India has amended Ind AS 12 to align with International Accounting Standard 12 and introduce new disclosure requirements for the OECD’s Pillar Two global minimum tax.
India’s Ministry of Corporate Affairs has issued the Companies (Indian Accounting Standards) Second Amendment Rules 2025 on 19 August 2025. This amendment was originally published in the Official Gazette on 13 August 2025.
The amendments revise Ind AS 12 to align with International Accounting Standard 12 and to address the OECD’s Pillar Two global minimum tax.
A new paragraph 4A specifies that Ind AS 12 applies to income taxes arising from Pillar Two legislation, including qualified domestic minimum top-up taxes, but requires that entities neither recognise nor disclose deferred tax assets and liabilities related to such taxes. Entities must also disclose when this exception has been applied.
Further amendments introduce disclosure obligations from 1 April 2025, including separate reporting of current tax expense linked to Pillar Two income taxes and information on an entity’s exposure when legislation has been enacted or substantively enacted but not yet effective. These disclosures may be qualitative or quantitative and where estimates are not available, entities must explain and provide details on their progress in assessing exposure.
