What is deferred tax, what is bank guarantee

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Deferred tax is a liability that arises due to temporary differences between accounting and tax rules. Bank guarantee is a commitment by a bank to pay a specified amount if the beneficiary fails to meet certain obligations.

Deferred tax is a result of differences in timing between when income or expenses are recognized for accounting purposes and when they are recognized for tax purposes.
Bank guarantee is a form of security provided by a bank to a beneficiary to ensure that the beneficiary will be paid if the obligor fails to fulfill their obligations.
Deferred tax can be either a deferred tax asset or a deferred tax liability, depending on whether the temporary difference will result in a future tax benefit or tax expense.
Bank guarantees are commonly used in international trade to ensure payment or performance obligations are met.
Deferred tax is calculated using the tax rate that is expected to apply when the temporary difference reverses.
Bank guarantees can be either performance guarantees or financial guarantees, depending on the type of obligation being secured.

What is deferred tax, what is bank guarantee

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