Assessable Profit

AAA

DEFINITION of 'Assessable Profit'

Taxable income payable after accounting for allowable deductions. Assessable profit is a calculation used in tax law to determine an individual's taxable income based upon gains or losses on funds held in taxable investment accounts. It is taken net of items, such as expenses within an investment account, depreciation and charitable donations.

INVESTOPEDIA EXPLAINS 'Assessable Profit'

Assessable profits are an important tax measure in constituencies where tax payers may see large portions of taxable income come from investments held in taxable investment accounts. In Hong Kong, for instance, assessable profits are used to determine an individual's HK profits taxes payable. Such tax income is important for jurisdictions that rely on taxation for a bulk of their budgetary capital.

RELATED TERMS
  1. After-Tax Return

    The return on an investment including all income received and ...
  2. Earnings Before Interest, Taxes, ...

    An indicator of a company's financial performance which is calculated ...
  3. Write-Off

    A reduction in the value of an asset or earnings by the amount ...
  4. Corporate Tax

    A levy placed on the profit of a firm, with different rates used ...
  5. Income Tax

    A tax that governments impose on financial income generated by ...
  6. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
Related Articles
  1. Should You File An Early Tax Return?
    Taxes

    Should You File An Early Tax Return?

  2. Retirement Savings: Tax-Deferred Or ...
    Taxes

    Retirement Savings: Tax-Deferred Or ...

  3. 6 Important Retirement Plan RMD Rules
    Taxes

    6 Important Retirement Plan RMD Rules

  4. 7 Ways To Avoid Self-Employed Tax Penalties ...
    Options & Futures

    7 Ways To Avoid Self-Employed Tax Penalties ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center