Income Tax Expense: debit or credit?
Income Tax Expense increases on the debit side and decreases on the credit side: its normal balance is a debit.
Expenses reduce equity through the costs of running the business. They increase with a debit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Income Tax Expense |
| Spain (PGC 2007) | 630 Impuesto sobre beneficios |
| France (PCG 2025) | 695 Impôts sur les bénéfices |
| Germany (generic accounts) | Steuern vom Einkommen und vom Ertrag |