The amount of income tax that a company has to pay in the future as a result of temporary differences between the accounting and tax treatment of certain items. Temporary differences arise when the recognition of income or expense for tax purposes is delayed or accelerated compared to the recognition for accounting purposes. Deferred tax liabilities are recorded as current or non-current liabilities on the balance sheet depending on the expected reversal date of the temporary differences and are measured using the tax rates and laws that are expected to apply in the period when the liability is settled.