Many autonomous wonder which expenses made during 2016 they can deduct in the income statement of 2017 because it can represent big savings. In this article, we analyze the deductible expenses for autonomous that tax though direct estimation regime, which is the most common.
Which are the requirements to consider an expense as deductible?
There are 3 requirements:
- The expenses have to be related to economic activity that the autonomous do.
- The expenses have to be properly justified with invoices or receipts.
- The expenses have to be accounting registered in his book of expenses and investments.
Deductible expenses in the income tax statement of 2017
Among the most common expenses that the Tax Agency establishes are:
- Operation consumption: purchase of goods, raw materials, fuel…
- Salaries: payments to employees, allocations for travel expenses, compensations…
- Social security paid by the company: contributions derived from recruiting of workers and those that corresponding to the autonomous entrepreneur.
- Other workforce expenses: cost of training and learning workplace, accident insurances, gifts, contribution to social enterprise plans…
- Leasing and royalties: rental, technical services, leasing fees that don’t have as an object lands, plots or other non-depreciable assets.
- Repairs and maintenance: maintenance costs, spare parts and adaptation of material goods. They are not included repairs or maintenance that implied an expansion or improvement.
- Services of independent professionals: economists, lawyers, notaries, etc.
- Other external services: expenditure on research, transport, banking services advertising, public relations, supplies of electricity, water and telephone, etc.
- Tax deductible: the property tax (IBI), the business tax (IAE) and other non-state taxes and surcharges and fees, state fees and contributions.
- VAT support: exempt activities (eg, medicine) and activities subjected to special regimes (special regime for equivalence surcharge and special regime of agriculture, livestock and fisheries).
- Financial expenses: interest on loans and credits, expenses discount of bills, fees for postponement of payment of debts, etc.
- Amortization: cost of deterioration or depreciation of investments contemplated as tangible or intangible assets assigned to the activity.
Special deductible expenses for the Tax Agency
The Tax Agency is increasingly strict in relation to deductible expenses of autonomous. This is the case of:
- Local or office at home. This situation must be notified to the Tax Agency though the models 036 and 037 indicating the percentage of the home dedicated to the activity.
- Mobile Phone. If you have only one phone line, you can deduct up to 50%, because the other half is considered to be for your personal use. If this situation is not useful for you, you can choose to have a professional and a personal line.
- Travel. You can deduct travel and accommodation but it has to be justified the professional character.
- Meals. It is appropriate to apply logic and scored with whom you were in the food in order to that the Tax Agency accepts it.
- Locker room. Accepted if it is a professional clothing such as uniforms or clothing with the logo of the company.
- Private vehicle and derived costs. You can only deduct it totally if the autonomous’ activity is related to transport. The rest can only be reduced by up to 50% in the case of VAT.
We have provided a general list so there are more deductible expenses and surely you can think about some expenses related with your activity. If you need some advice please contact GM Tax. We will study your case and find the best solution to deduct expenses. In addition, if you desired, can help make your tax statement. Contact us!