What is Income Taxes Payable?
Income taxes payable is a liability for taxes which have to be paid to the government.
Income tax can arise on the profits of a business for the year, and any amount not paid by the end of the year would be classified as income tax payable.
The income taxes payable account in the accounting records, is normally classified as a current liability in the balance sheet as it is payable within one year.
For further information on income tax liabilities see the Wikipedia definition.
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About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.