What expenses can be deducted from taxable income?
Every day, a crucial question.
A clear and concrete answer every day.
Excerpt from the book “50 Answers to Our Entrepreneurs”, written by François Cattin, founder of the Group Les Experts Unis.
The book was completely updated and rewritten last September.
With the exception of the micro-enterprise scheme: a profit and loss statement is prepared every year.
Profit is therefore the difference between revenue and expenses.
To be deductible, an expense must be generated in the direct interest of the company for its normal management of the company and of course be recorded using an invoice or an accounting document.
Therefore, there is no exhaustive list.
Meal expenses may be deductible if they are incurred during a business trip or with clients or suppliers. Hence the tax obligation to include the names of the diners on the meal receipt.
The same applies to travel and transportation expenses or business gifts, which must remain reasonable given the volume of business handled.
However, personal expenses, some passenger vehicle expenses, and so-called luxury expenses (non-professional hunting and fishing, pleasure boats, second homes, etc.) are not deductible. Similarly, the remuneration of a self-employed individual, fines, and certain taxes are also not deductible.
The list is not exhaustive.
Expert advice:
Your accountant will be there to advise you.
But you shouldn't manage your business solely from a tax perspective.
Indeed, the expense must be incurred because it is useful to the company; and not because it is tax-deductible or not.
Of course, if the sum is significant, it's very useful to know. But taxation isn't the most important aspect of business.