Types of acceptable tax expenses

Types of acceptable tax expenses

1- The purchase price of the sold goods or the purchase price of consumables in the sold goods and services.

2- Employment expenses according to the service of the employees, including salaries or basic wages and continuous benefits, whether in cash or non-cash, bonuses, holidays, overtime, travel expenses and extra travel expenses.

3- The rent of the institution premises that is rented.

4 – Rental of machinery and equipment
Relevant if it is rented.

5- Fuel expenses for water lighting, telecommunications, communications.

6- Payment for various types of insurance related to the operations and assets of the institution (policyholders’ rights – insurance of public institutions).

7- Paid rights and concessions, as well as rights and duties and taxes due to the activities of the institution to the municipalities.

Ministries, government institutions and their affiliates are paid.

8- Research, testing and training costs related to the institution’s activity.

9- Expenses related to the compensation of damages related to the activity and property of the institution, provided that:

First, the existence of damage must be verified.
Secondly, the topic and its amount should be clear.
Thirdly, according to the provisions of the law or the existing contracts, compensation should be the responsibility of another.
10 – Cultural, sports, and welfare expenses of the residents.

11 – Deposit of receivables whose collection is doubtful, provided that it is related to the institution’s activity. There is a high probability that it is available for non-receipt and it has been assigned to a special account in the institution’s offices.
12 – Partial costs related to the location of the institution, if it is rented, are the responsibility of the tenant.
13 – Expenses related to the maintenance and upkeep of the institution if it is private.
14 – Transportation expenses.
15 – The service of coming and going and drinking water.
16 – Fees paid in proportion to the work done, such as commission, brokerage, attorneys’ fees, consultation fees, attendance fees, audit fees, and financial and administrative services.
17- The fee that has been paid to banks and also non-bank credit institutions for carrying out the institution’s operations, and in the case of banks, bank fees paid for obtaining a loan.
18 – The price of administrative necessities and supplies that usually disappear within a year, which is considered as the cost of necessities.
19- Expenses for repair and maintenance of machinery and work equipment and replacement of spare parts that are not considered as basic repairs (calculated to the value of the property because it increases the value). In case the replacement is considered as a major repair and will increase the cost of the property.

20 – The cost of mining exploration.
21 – Expenses related to membership fees and subscription fees paid to institutions related to the institution’s activities.
22 – Uncollectible claims on the condition of proof from Modi (tax payer).
23 – The loss resulting from exchange rate (loss) based on common accounting principles.
24 – Conventional production waste.
25 – The reserve related to the acceptable expenses related to the year under consideration and in cases where the definite acceptable expenses of the previous years are less than the reserve intended for them in the relevant year, we will be acceptable with the difference.

26- Acceptable expenses related to the previous years that are paid and allocated in the tax year under consideration.

Financial Tax Group of Iran Consultants Authority

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This post is written by Arambnamkhda