Banking

Corporate Income Tax Provision

Accruing the annual income tax on the bank's taxable profit.

Account NameTypeDebit ($)Credit ($)
Income Tax ExpenseExpense (+)8,000,000.00-
Income Tax PayableLiability (+)-8,000,000.00

💡 Accountant's Note

Jordanian banks pay income tax at the applicable corporate rate (currently 35% for banks). Stage 3 loan provisions are generally tax-deductible; Stage 1/2 collective provisions are not, creating significant deferred tax items.

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