Tiêu đề chapter 2 part two.pdf ✅

CHAPTER TWO TAX ON COMMERCIAL & INDUSTRIAL PROFITS Part two DR. Rana Mahmoud
Deductible costs : The general conditions for considering costs deductible from revenues These conditions were mentioned in Article 22 of the law No. 91 of 2005, as follows: 1- Relating the cost to activity: It is required that the cost be relevant to the activity of the firm, and necessary to practice this activity. Therefore, the sums which represent utilization of profit like the rental pertaining to housing of the taxpayer or personal and family expenses are not deductible. 2- Proof of the occurrence establishing the cost: It is required that the cost be true and possible Therefore, the reserves and provisions, whether shall be for supporting the position of the firm or meeting losses possible to occur in future, are not considered deductible cost.
3- Relating the cost to tax year: This requirement is considered an application to the accrual basis, and independence of tax year. Therefore: - All costs and expenses related to the shall be considered as deductible from revenues, whether have been actually paid or not, according to the accrual basis. - The costs and expenses which taxpayer pays in a certain year but its pertaining to a preceding or following year or years, are not considered as deductible costs according to the principle of independence of tax year. 4-They supported by documents: It is required that costs and expenses be supported by documents except the costs and expenses that are customarily not supported by documents such as: expenses of internal travel, cleaning expenses, ordinary maintenance expenses, and gratuities.