Tax base

For an asset, the tax base is generally the amount deductible for tax against taxable economic benefits arising when the asset’s carrying amount is recovered; specific rules apply when those benefits are not taxable. Liability tax bases depend on the carrying amount and future tax deductions or tax treatment of the underlying amounts. Compare the relevant carrying amount and tax base to identify taxable or deductible temporary differences, then apply IAS 12 recognition conditions and tax rates.