Deductible expenses

Deductible expenses are those that are subtracted from gross income to obtain the tax benefit. Deductible expenses will be necessary and essential to perform a professional or business activity.

Therefore, a deductible expense will be one that can be subtracted to pay less taxes to the Tax Administration . It is essential for their justification that they are collected in invoice.

Requirements for an expense to be considered deductible

  1. That is necessary to develop an economic or business activity.
  2. That they are correctly justified: These expenses must be documented on an invoice that proves their existence. One ticket will not be enough to justify them.
  3. That they are duly accounted for: Deductible expenses must be included in the account books.
  4. The expense must be accrued therein in the tax period in question.
  5. The expense must have its origin in assets that are owned by the taxpayer and that are related to economic activities.
  6. It has to be necessary to be able to earn income.
  7. They must be reliable. That is, it can be perfectly demonstrable.
  8. You must comply with the principle of causality.

Examples of deductible expenses

  • Operating consumptions: Everything that is essential to carry out the work, that is, raw materials and office supplies.
  • Wages and salaries: Social contributions are included, also your own. Training courses, compensation for termination of contracts and insurance are included.
  • Leases: Local rentals, leasing and renting.
  • Reparations and conservation.
  • Services of independent professionals: Lawyers and advisory services.
  • Taxes that are tax deductible.
  • Amortizations: They are defined as the amount that can be deducted for the deterioration or depreciation of the assets you acquire to perform a professional activity. They are calculated based on some tables.
  • Expenses considered difficult justification.
  • Other deductible expenses: Acquisition of books, subscriptions to professional journals, expenses for attending events, fees for business associations or professional associations.
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