For Mongolian corporate income tax (ААНОАТ) under IAS 12. Compare each item's book value with its tax base, then tax the gap at the rate expected when it reverses.
Enter amounts at the start and end of the year. The opening figures give you the movement, which is the deferred tax expense.
| Opening | Closing |
|---|
| Item | Book vs tax | Result | Why |
|---|---|---|---|
| Asset | Book > tax base | DTL | You've deducted more for tax already, so more tax is due later. |
| Asset | Book < tax base | DTA | More tax deductions are still to come. |
| Liability | Book > tax base | DTA | The expense is booked now but deductible only when paid. |
| Liability | Book < tax base | DTL | Taxable income arises later. |
| Tax loss carried forward | — | DTA | It reduces future tax, if future taxable profit is likely. |
1% regime. A company taxed at 1% of revenue has no profit-based tax, so temporary differences don't change its future tax. In practice it recognises no deferred tax. If it expects to leave the regime, use the 10% or 25% rate for the years after that.
Rate changes. Use rates that are enacted or substantively enacted at the reporting date. If Parliament passes new CIT bands, remeasure all balances. The effect goes to profit or loss, except for items that were originally recorded in OCI or equity.
Deferred tax assets are recognised only if taxable profit is probable. Mongolian tax losses can be carried forward only for a limited number of years and can offset only part of each year's taxable income, so test recoverability against that limit.
Common sources: tax depreciation rates that differ from book useful lives, allowances for doubtful receivables that aren't deductible until written off, accrued expenses deductible when paid, revaluations of PPE, and unrealised FX differences on foreign-currency loans, where the tax treatment differs from the books.
Permanent differences (fines, non-deductible expenses, income taxed separately such as dividends) never reverse. They change the effective tax rate but create no deferred tax, so leave them out of the items above.
This is a learning and working tool, not tax advice. Have your auditor or tax adviser confirm tax bases and rates.