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The phrase "is based on that" is correct and usable in written English.
It is commonly used when talking about something that is founded, influenced, or derived from something else. Example: The plot of the movie is based on that popular novel.
Exact(60)
His wealth is based on that one transaction.
His vision of himself is based on that relationship.
And my budget is based on that philosophy.
So much of modern horror is based on that idea.
And the debt service is based on that".
This routine is based on that of Pasquale Mazzotta.
This installation procedure is based on that recommendation.
The illustration at right is based on that photo.
The syntax is based on that of the Mishna.
Our regional configuration is based on that of 36.
One of the voices is based on that of an African-American actor from New Jersey.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com