tax depreciation

The depreciation used on a company's income tax return. Usually this is different from the depreciation used on the financial statements.

Depreciation used on a company's income tax return, usually different from depreciation in financial statements.

- Used when computing taxes, preparing returns, and documenting tax positions.
- Used to evaluate transaction tax impact and ensure compliance (VAT/GST/Corporate Tax).

- Example: The tax team applies **tax depreciation** to determine the correct tax treatment and to support the filing.

- Why it matters: Reduces compliance risk, helps avoid penalties, and supports consistent tax reporting and defensible positions.