GT News

Taxes, accounting, law and more. All the key news for your business.

Petra Čechová | April 9, 2024

NI-70 Deferred tax and exchange differences excluded from taxation

Share article:

In the course of March 2024, the National Accounting Council (“NAC”) approved for external comments a draft interpretation relating to deferred tax and exchange differences excluded from taxation.

This draft interpretation responds to the option given in the Income Tax Act to choose a tax regime, in which the taxpayer excludes selected exchange rate differences from the income tax base. From the accounting perspective, exchange differences arise on receivables/payables that are entered into costs/revenues and are part of the accounting profit/loss. However, the use of the tax regime will result in a temporary difference in accounting between the book and tax value of the receivable/debt. Thus, the Interpretation addresses the issue of the generation and recognition of deferred tax on this ground.

The full text of the draft interpretation can be found at the link: NI-70.pdf (nur.cz)

The general public now has the opportunity to comment on NI-70 until 30 April 2024. Subsequently, the external comments will be addressed and will result in the final form of this interpretation.