tax base is the base of an asset on which the depreciation is calculated. Depreciation is used to deduct against the income to arrive at taxable income.
For example, if the tax base of a building is 500k and the depreciation rate is 10%, the depreciation on the building is 500k x 10% = 50k. And if the total income after offset against other deductions is 200k, the taxable income is 200k - 50k=150k. The tax base of the building for the next year is 500k - 50k = 450k.
Hopefully can help you. | 
发表于 2010-9-16 20:32
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