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
- That is necessary to develop an economic or business activity.
- 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.
- That they are duly accounted for: Deductible expenses must be included in the account books.
- The expense must be accrued therein in the tax period in question.
- The expense must have its origin in assets that are owned by the taxpayer and that are related to economic activities.
- It has to be necessary to be able to earn income.
- They must be reliable. That is, it can be perfectly demonstrable.
- 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.