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Corporate Laws Central Ministry of Corporate Affairs Companies Act, 2013

MCA issues the Companies (Accounting Standards) Amendment Rules, 2026

10-Mar-2026 | G.S.R. 169 (E)

MCA has issued amendment rules to amend the provisions of the Companies (Accounting Standards) Rules, 2021, effective from March 12, 2026.

Pursuant to these amendment rules, the following amendments have been made to Accounting Standard (AS) 22 (Accounting for Taxes on Income) provided in Annexure B of the Companies (Accounting Standards) Rules, 2021:

a. A new Para 2A has been inserted after Para 2, which specifies that the accounting standard shall be applicable to taxes on income arising from tax laws enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD), including tax laws that implement qualified domestic minimum top-up taxes described in those rules. Such tax laws, and the taxes on income arising from them, are hereafter referred to as ?Pillar Two legislation? and ?Pillar Two income taxes?.

b. After Para 32, new Paras 32A, 32B, 32C, and 32D have been inserted, providing provisions regarding disclosures to be made by enterprises. These include an exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes and disclosure of the enterprise?s current tax expense (income) related to Pillar Two income taxes, among others.

c. After Para 34, a new paragraph has been inserted specifying the effective date for applying the ?International Tax Reform?Pillar Two Model Rules?. It provides that Paras 2A and 32A shall be applicable to enterprises immediately upon the issuance of these amendments and retrospectively, while Paras 32B?32D shall apply to annual reporting periods beginning on or after April 1, 2025.

Kindly refer to the attached document for more information.

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