| Deductible Expenses | Article of Law | Reasoning |
|---|---|---|
| Operational Costs | Article 10 | Necessary expenses incurred in the course of conducting business operations are deductible. |
| Employee Salaries | Article 15 | Wages and salaries paid to employees for services rendered are considered deductible expenses. |
| Marketing Expenses | Article 20 | Costs associated with advertising, promotions, and marketing activities are deductible. |
| Depreciation | Article 27 | Depreciation expenses for tangible assets used in business operations are deductible over time. |
| Rent and Leasing Expenses | Article 30 | Rental and leasing expenses for business premises and equipment are deductible. |
| Utilities | Article 35 | Costs related to utilities such as electricity, water, and internet services are deductible. |
| Non-Deductible Expenses | Article of Law | Reasoning |
|---|---|---|
| Fines and Penalties | Article 40 | Penalties imposed by regulatory authorities or fines for non-compliance are not deductible. |
| Personal Expenses | Article 45 | Expenses of a personal nature, such as personal meals and entertainment, are not deductible. |
| Gifts and Donations | Article 50 | Gifts and donations made for personal or non-business purposes are not deductible. |
| Political Contributions | Article 55 | Contributions to political parties or candidates are not deductible as business expenses. |
| Expenses with Limitations | Article of Law | Limitations |
|---|---|---|
| Business Meals and Entertainment Expenses | Article 60 | Deductions limited to 50% of the actual expenses incurred. |
| Travel Expenses | Article 65 | Deductions limited to expenses directly related to business activities. |
- Deductible Expenses: These expenses are essential for conducting business operations and are incurred wholly and exclusively for business purposes. Therefore, they are allowed as deductions to determine taxable income.
- Non-Deductible Expenses: These expenses do not directly contribute to the generation of income or are not incurred for business purposes. Therefore, they are not deductible to prevent tax deductions for personal or non-business expenses.
- Expenses with Limitations: While these expenses may be necessary for business activities, their deductibility is subject to certain limitations to prevent abuse or misuse of tax deductions. These limitations ensure that only the portion of expenses directly related to business activities is deductible.
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