Presentation of Taxes or Other Charges that Are Not Tax Expense or Tax Income Applying IAS 12 Income Taxes (IFRS 18)

At its meeting in October 2025, the IASB asked the IFRS Interpretations Committee (the Interpretations Committee) to consider a consistent application matter related to the application of IFRS 18. The matter concerns whether an entity applying IFRS 18 is permitted to present taxes or other charges that are not income taxes within the scope of IAS 12 Income Taxes in the ‘income tax expense or income’ line item of the statement of profit or loss or in the income taxes category of the statement of profit or loss.

In November 2025, the Interpretations Committee opened a consultation on its tentative agenda decision that, applying IFRS 18, an entity is not permitted to present such taxes or other charges in the ‘income tax expense or income’ line item of the statement of profit or loss or in the income taxes category of the statement of profit or loss.

Having considered feedback to the consultation on this tentative agenda decision at its meeting in March 2026, the Interpretations Committee decided to finalise the agenda decision. However, at the May 2026 IASB meeting, the Interpretations Committee asked the IASB whether and how to respond to concerns about the outcome of applying the IFRS 18 requirements (as reinforced by the agenda decision) to particular non-income tax charges.

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