Note 2-41
- Japanese version
- English version
(41) But, "temporary differences" are deducted from the denominator and numerator of the tax burden rate of corporate income tax. "Temporary differences" refer to the differences resulting from different timing of recognition of costs between the financial accounting and tax accounting, such as reserves and write-off. On the other hand, the differences that are not permanently deductible in the tax accounting, such as entertainment expenses, are called "permanent differences." "Temporary differences" are excluded because their inclusion produces different tax burden rates according to the timing of calculation.