Income Tax Payable



A type of account in the current liabilities section of a company's balance sheet. This account is comprised of taxes that must be paid to the government within one year. Income tax payable is calculated according to the prevailing tax law in the company's home country.


This account is usually identified in the balance sheet when the company has received its tax bill but has put off paying it for the time being. The taxes are calculated on the company's net income according to its corporate tax rate. If a company is due to receive a tax benefit from its respective revenue agency, the amount of income tax payable will decrease.


  1. Tax Expense

    A liability owing to federal, state/provincial and municipal governments. Tax ...
  2. Current Liabilities

    A company's debts or obligations that are due within one year. Current liabilities ...
  3. Income Tax

    A tax that governments impose on financial income generated by all entities ...
  4. Internal Revenue Service - IRS

    A United States government agency that is responsible for the collection and ...
  5. Tax Liability

    The total amount of tax that an entity is legally obligated to pay to an authority ...
  6. Tax Rate

    The percentage at which an individual or corporation is taxed. The tax rate ...
  7. After-Tax Income

    The amount of money that an individual or company has left over after all federal, ...
  8. Long-Term Capital Gain Or Loss

    A gain or loss from a qualifying investment owned for longer than 12 months ...
  9. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities and shareholders' ...
  10. Corporate Tax

    A levy placed on the profit of a firm, with different rates used for different ...
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