The General Accounting Plan (PGC), in its section on Recording and Valuation Standards, in section 13, speaks of the account 4752. This is where companies must record the amount of corporate income tax due.
Account 4752 is one of the accounts included in the PGC, specifically the account for the amount of corporation tax payable.. . . is shown under current liabilities in the balance sheet.
For many business owners, accounting presents a challenge. However, it is their responsibility to keep the company's accounts up to date. To do this, one of the things they must know is What expenses can be deducted from corporation tax.
Knowing which ones it is helps to reduce the type to pay for the business and, for that, it is necessary to attend to the applicable regulations.
La current regulations on Corporation Tax allows deduct from the tax base some expenses that are necessary for the proper and normal functioning of the business. Through these deductions, the aim is to encourage business decisions that help keep the national economy running, by investing in certain services or purchasing specific products.
The following are among the expenses deductible for corporate income tax purposes:
These are decisions that affect accounting profits, but thanks to the option to deduct them, tax relief is offered to the business. Those who meet certain requirements can take advantage of this, such as:
The accrual basis must be applied to the recognition of income and expenses, and expenses and investments must be made in the course of carrying out the activity with the objective of generating income. These are necessary requirements in addition to those previously mentioned.
It should be borne in mind that there will be other non-deductible expenses for Corporation Tax purposes, such as fines, penalties, certain donations, dividends, depreciation exceeding certain limits, or the expense of Corporation Tax itself.
After understanding what account 4752 is and knowing which expenses are deductible and non-deductible for corporation tax, you have no excuse not to keep your accounting up to date. Now, all you need to do is figure out how to simplify expense management in your business so you don't overlook a single detail.You know Edenred's solutions?
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