7.5.2.3. Tax deductible expenses

In general, expenses provided for in accounting regulations are considered deductible, as long as they are not expressly excluded by a tax rule.

For an expense to be tax deductible, it is also necessary that it has been accrued, is accounted for and that adequate justification is available (generally a complete invoice).

The following expense list can be used as a guide:

VAT TREATMENT

As a general rule, expenses should not include the amount of VAT incurred on the acquisition of goods or services, except in the following cases:

• If the activity carried out is in the special regime of the equivalence surcharge or in that of agriculture, livestock and fishing.

• In the acquisition of goods that in turn are transmitted with application of the special regime for used goods, art objects, antiques and collectibles.

• When in the acquisition of goods or services the fees paid are not deductible from those accrued in accordance with the Value Added Tax regulations.

1. Operating consumption
2. Wages and salaries
3. Social Security paid by the company (including the contributions of the owner)
4. Other staff expenses
5. Rents and charges
6. Repairs and upkeep
7. Independent professional services
8. Other external services
9. Tax deductible taxes
10. Financial expenses
11. Repayments
12. Provisions
13. Amortizations and provisions in simplified direct estimation
14. Patronage incentives: collaboration agreements in activities of general interest
15. Patronage incentives: expenses on activities of general interest
16. Other tax deductible concepts. Losses due to impairment of the value of assets. Deductible amounts.
17. Other tax deductible concepts.
18. Non deductible expenses
19. Health insurance
20. Losses due to debtor insolvencies