Tax basis of assets refers to the amount that can be deducted from taxable economic benefits when calculating taxable income in the process of recovering the book value of assets, that is, the amount that can be deducted before tax when assets pay taxes in the future. The tax basis of assets is the due amount of assets in the balance sheet provided by assuming that the enterprise conducts accounting in accordance with the provisions of the tax law.

formula

The tax basis of the assets is as follows:

Tax basis of assets = future pre-tax deductible amount.

rule

Provisions on the tax basis of assets:

The tax law clearly stipulates that the depreciation, amortization, cost and net value of an enterprise's inventory, fixed assets, intangible assets, investments and other assets can be calculated according to the specific tax treatment methods stipulated by the competent departments of finance and taxation of the State Council, and deducted when calculating the taxable income. Compared with the accounting book value, the Accounting Standards for Business Enterprises No.65438 +08- Income Tax stipulates that the amount that can be deducted from the taxable income according to the provisions of the tax law in the process of recovering the book value of assets is called the "tax basis" of assets.

The new tax law implementation regulations introduced the concept of tax basis for the first time.

The tax basis of an asset corresponds to its book value. Sometimes they are the same, but sometimes they are different. Because of the different accounting purposes of accounting and tax law, there are often differences in income recognition, cost deduction and asset disposal. In this case, the tax basis of the asset is inconsistent with the book value of the asset.

For example, if an enterprise holds trading financial assets, it will reflect the gains and losses of changes in fair value during the holding period on the balance sheet date, so as to increase the book value of the assets and the current profit and loss of the enterprise. However, according to the provisions of the tax law, the gains and losses from changes in fair value are not included in the taxable income, so its tax basis remains unchanged and remains its historical cost. However, its book value is the balance of its historical cost plus gains and losses from changes in fair value, so it is different from tax basis.

Another example is that an enterprise owns an inventory. During the ownership period, due to the change of market factors, the price of inventory decreases, and the enterprise withdraws the inventory depreciation reserve according to accounting standards, so the book value of inventory is its historical cost MINUS the inventory depreciation reserve. However, according to the provisions of the tax law, the inventory depreciation reserve extracted by an enterprise cannot be deducted before tax, so the tax basis of the inventory is still its historical cost, which is different from the book value.

For another example, if an enterprise owns a fixed asset and depreciates it according to the straight-line method, its service life is expected to be 15 years, but the minimum depreciation period stipulated in the tax law shall not be less than 20 years. If the enterprise holds the fixed assets for 5 years, it shall be disposed of. At this time, the book value of fixed assets is its historical cost minus depreciation extracted according to accounting standards, but its tax basis is its historical cost minus depreciation accrued according to tax law. Because the depreciation that can be extracted is different, yes.