Deferred taxes in the context of international accounting standards and the impact of changes in corporate tax rate on the profitability of companies: a research on companies registered in Borsa Istanbul

Deferred taxes occurred as a result of the current period activities but will affect to futures payable taxes because of timing and measurement differences, appears on the IFRS financial tables. Thus, deferred tax appears on the balance sheet and profit and loss tables, leads to tax effect increase on financial analysis. In this study, deferred taxes changing effects on profitability, that calculated and accounted according to IAS 12 Income Taxes through tax rate changing, are analyzed. In this object the companies profitability ratios like return on equity (ROA), return on assets (ROE), return on sales (ROS), calculated and analyzed in a different way that traded in BIST 100 index and their financial tables prepared in accordance with IFRS completely. The research findings show that each company context of the study affected differently by tax rate changing because of their deferred tax structure. Increase in tax rate, caused the increase of the class profitability ratios that occurs the companies have net deferred tax income; on the other hand caused the decrease of the class profitability ratios that occurs the companies have net deferred tax expense. The decrease in tax rate has the opposite effect.