What to Deduct?
EVERYTHING that relates to running a business and constitutes a reasonable and necessary expense. The expenses may vary for each type of activity, but nonetheless, it is possible to identify types of expenses common to most businesses:
- Advertising and marketing
- Compensation for employees or independent contractors
- Rent for premises or equipment
- Office maintenance expenses
- Software payments
- Banking services
- Insurance
- Purchase of materials and tools
- Payment for professional training aimed at improving qualifications
- Professional services of an accountant or lawyer
It is important to note that there are certain limitations and rules regarding which expenses can be recognized as reasonable and taken into account for taxation. Some expenses may be fully deductible, while others may be subject to depreciation or expensing over several years.
