Basis Tax is an income tax assessed on the basis of elements such as the value of goods, services and other investments. It is calculated with current or anticipated values, instead of a flat rate set by a government. With Basis Tax, businesses can accurately account for financial gains or losses when dealing with taxable income. In this way, Basis Tax allows for some flexibility within the taxation system, preventing companies from becoming overly taxed. By understanding how Basis Tax works and adapting their financial plans accordingly, businesses can ensure they’re consistently in compliance with the relevant laws.