What are sample deductible expenses?

Article by: Jan Arteaga | Last update: April 10, 2022
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Examples of deductible expenses

    Operating consumption. … Wages and salaries. … Social Security. … Other personnel expenses. … Leases and royalties. … Reparations and conservation. … Services of independent professionals. … Other external services.

What are deductible expenses and what are they?

What are deductible expenses

Specifically, deductible expenses are the sum of accounting, operating and financial expenses plus non-accounting tax expenses (provided they meet certain requirements) that can be subtracted from the taxable income to determine the tax base.

When are expenses deductible?

According to the Law, deductible expenses are those that are related to the generation of income of a company. That is, all those related to the business activity.

What are deductible expenses in the income statement?

Deductible expenses are those that are subtracted from a taxpayer’s gross income so that the amount to declare is less.

What are the 2021 deductible expenses?

Expenses may be deducted for the years 2021 and 2022, in the following percentages: Hotels and Restaurants: 25% of the expense incurred. Professional Services: 30% of the expense incurred. Rental of Properties: 30% of the expense incurred.

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What are the deductible expenses for natural persons?

Deductible expenses for natural persons, including the following items for each item:

    Housing deduction: (A single property for housing) Interest on mortgage loans for: Acquisition or Construction.Remodeling.Extension.Improvement.Maintenance.Payment of housing lease.

What is the difference between deductible and non-deductible?

How to differentiate a deductible and non-deductible expense? An expense is deductible when: It is necessary to carry out an economic or business activity. It is adequately justified by the necessary documentation, that is, an invoice or tax receipt that meets the data to be validated.

What are the deductible taxes?

Health, education, insurance premiums, donations and voluntary contributions to the Afore are other types of personal expenses that can be tax deductible and can help you when filing your tax obligations.

What is non-tax deductible?

Non-deductible expenses are those expenses that cannot be deducted for the calculation of the tax base on which the taxes will be paid.

What is a non-deductible expense?

On the other hand, non-deductible expenses are those that cannot be used to determine the taxable base of taxes, because by their nature they are not strictly related to the main economic activity of the company.

What are examples of non-deductible expenses?

Donations, subsidies and other allocations in money, in kind or in service that constitute use of income, whose deduction is not allowed by the Internal Tax Regime Law.

What are personal housing expenses?

In this sense, without prejudice to the expenses detailed by law: acquisition, construction, remodeling, expansion, improvement and maintenance of a single property. By way of illustration, concepts such as basic services were included: water, electricity, conventional telephone, gas and even condominium rates.

What are examples of personal expenses?

Some examples:

    Housing.Health.Food.Transport from your home to your workplace.Children’s education.

What is considered as personal expenses?

The personal expenses that can be deducted correspond to those made for: housing, health, food, clothing and education, including in the latter category the concepts of art and culture.

What are the 2021 SRI personal expenses?

The personal expenses that can be deducted correspond to those made for housing, food, clothing, health, tourism and education, including art and culture in this category.

What are non-verifiable expenses?

What are the non-deductible expenses

Gifts, hospitality, and other expenses of a similar nature, unless they are directly related to the sale of products or the provision of services and are offered to customers in general.

When are 2021 personal expenses declared?

If your personal expenses deduction in 2021 exceeded USD 5,606.00, you are required to submit the Personal Expenses Annex in the month of February according to the ninth digit of the RUC or identity card.

What does SRI housing expenses include?

LEASING Leasing of a single property used for housing. MORTGAGE LOAN INTEREST Interest on mortgage loans granted by authorized institutions, intended for the expansion, remodeling, restoration, acquisition or construction of a single home used for housing.

Who must file a 2021 Personal Expense Schedule?

The natural persons who must submit the Personal Expenses Annex are those who during the past year have had expenses greater than USD 5,606, which is 50% of the tax base, which for 2021 was USD 11,212.

What can be deducted as personal expenses 2020?

Health up to $14,709.50 Payment of medical fees and health professionals; health service provided by duly authorized hospitals, clinics and laboratories; prepaid medicine, health insurance premium and deductibles; medicines, medical supplies, lenses and prostheses, and some other health accessory…

What are the 2022 deductible personal expenses?

Natural persons will enjoy a reduction in Income Tax caused by personal expenses for housing, health, food, clothing, tourism and education, including in the latter category the concept of art and culture.

What are the basic expenses?

They are those necessary expenses that are repeated periodically, so it is known in advance when they must be paid and what amounts must be paid. This category includes expenses for housing, education, insurance, taxes and loans, among others.

What does it mean that VAT is not deductible?

Definition of non-deductible input VAT

Unlike the previous deductible input VAT, the non-deductible input VAT will be the one that is not justified as an activity of the professional or the entrepreneur, and, therefore, will not lead to any refund.

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