| Deferred Tax Asset (DTA) | Tax benefit arising from deductible temporary differences or tax loss carryforwards; future tax savings |
| Deferred Tax Liability (DTL) | Tax obligation arising from taxable temporary differences; future tax payments |
| Temporary Difference | Difference between carrying amount and tax base that will reverse in future periods |
| Permanent Difference | Difference between accounting and taxable income that never reverses; affects effective tax rate |
| Tax Base | Value of an asset or liability for tax purposes |
| Carrying Amount | Book value of an asset or liability on the balance sheet |
| Taxable Income | Income calculated per tax rules and regulations |
| Pretax Income (Accounting Income) | Income before tax per financial reporting standards |
| Tax Expense (Provision) | Total income tax reported on the income statement (current + deferred) |
| Taxes Payable (Current Tax) | Amount actually owed to tax authorities for the current period |
| Deferred Tax Expense | Change in DTL minus change in DTA during the period |
| Effective Tax Rate | Income tax expense divided by pretax income |
| Statutory Tax Rate | Tax rate enacted by law |
| Valuation Allowance | US GAAP contra-asset reducing DTA when realization is not more likely than not |
| Tax Loss Carryforward | Unused tax losses carried to future periods to reduce future taxable income |
| Tax Loss Carryback | Unused tax losses applied to prior periods to recover taxes previously paid |
| Taxable Temporary Difference | Creates DTL: carrying amount of asset exceeds tax base, or tax base of liability exceeds carrying amount |
| Deductible Temporary Difference | Creates DTA: tax base of asset exceeds carrying amount, or carrying amount of liability exceeds tax base |
| Tax Rate Change Effect | Existing deferred taxes remeasured at new rate; adjustment flows through income tax expense |
| Recognition Threshold | IFRS: probable; US GAAP: more likely than not (recognize full DTA, then valuation allowance) |