Differences between taxable income and pretax accounting income arising from transactions that, under applicable tax laws and regulations, will not be offset by corresponding differences or "turn around" in future periods is a definition of

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Permanent differences are differences between taxable income and pretax accounting income that will never be offset in future periods. This can arise from transactions that are either not deductible or not taxable for tax purposes, or from items that are treated differently under tax and accounting rules. Timing differences, on the other hand, are temporary differences that arise from differences in the timing of when income and expenses are recognized for tax and accounting purposes. Intraperiod tax allocation refers to the process of allocating income tax expense between continuing operations, discontinued operations, and other comprehensive income within a single period. Interperiod tax allocation refers to the process of allocating income tax expense and income taxes payable or refundable between different periods.

Differences Between Taxable Income and Pretax Accounting Income Arising from Transactions