Fundamental Glossary / Earnings & Accounting Concepts
Current Tax
The tax expected to be paid on this period's taxable profit.
Formula
The current-tax line in the tax note, distinct from deferred tax. Cash tax paid appears in the cash flow statement and can differ from the current-tax expense by the change in tax payable.
What it means
Current tax is the tax bill for the year's taxable income. It can be very different from accounting profit times the headline corporate rate, because of exemptions, depreciation differences, and losses.
The tax note reconciles accounting profit to taxable profit. That reconciliation is one of the most useful pages in the annual report.
How to read it
A current-tax rate far below the statutory rate needs a reason that will last. A tax holiday that expires is a future margin hit.
What to watch
Cash taxes paid over several years, not one year's current-tax expense, are the better input to a valuation when the expense is distorted by assessments and refunds.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.