The Corporate Tax implications of a revaluation loss hinge on whether the Taxable Person has chosen to recognize gains and losses based on a realisation principle.

In cases where no election has been made, the tax treatment aligns with the accounting treatment. This implies that revaluation gains and losses reported in the financial statements are liable to Corporate Tax in the relevant Tax Period.

Conversely, if the Taxable Person has opted for recognizing gains and losses under the realisation principle, any gains or losses related to changes in the value of the asset or liability beyond its original cost are disregarded for Corporate Tax purposes. Instead, these gains and losses become subject to Corporate Tax only when the underlying asset or liability is actually sold or settled.