Which expenses can be deducted for tax purposes?
July 19, 2022 | 50,00 EUR | answered by Mia Köhler
Dear Mr. Lauer,
I am faced with the challenge of preparing my corporate tax return for the current fiscal year and I am unsure which expenses are tax deductible. As the managing director of a medium-sized company, it is particularly important to me to take advantage of all opportunities for tax optimization while ensuring legal compliance.
In this context, I would like to learn more about the various types of expenses that are tax deductible. I am particularly interested in expenses related to business activities, such as personnel costs, rent for business premises, operating supplies, and investments in the company.
Furthermore, I am also interested in information on possible special expenses such as donations, research expenses, or other business-related expenses that can be claimed for tax purposes.
Since I have little experience with corporate tax and the tax regulations are not entirely clear to me, I would like to know from you what specific steps I can take to adequately consider my expenses and thus reduce my tax burden.
I look forward to your expertise and thank you in advance for your support.
Sincerely,
Konrad Lauer
Dear Mr. Lauer,
Thank you for your inquiry regarding the corporation tax return for your medium-sized company. It is understandable that as a managing director, you are interested in exploring all possibilities for tax optimization and acting legally safely. I am happy to provide you with an overview of the different types of expenses that are tax-deductible and how you can reduce your tax burden.
First of all, all expenses related to business activities are generally tax-deductible. This includes personnel costs, rent for business premises, operating expenses, and investments in the company. These expenses are usually recorded as operating expenses and thus reduce the taxable profit of your company.
Furthermore, there are also special expenses that can be claimed for tax purposes. These include donations, research expenses, or other business-related costs. These expenses can be taken into account in your tax return as special expenses or as extraordinary burdens under certain conditions.
To optimally account for your expenses and reduce your tax burden, it is important to carefully collect and document all receipts and documents. Additionally, you should regularly work with a tax advisor to ensure that all tax opportunities are utilized and to minimize potential tax risks.
I recommend that you contact a tax advisor early on to professionally prepare your corporation tax return and ensure compliance with all tax regulations. A tax advisor can help you identify and optimize all tax-relevant expenses to reduce your tax burden.
I hope this information is helpful to you and I am available for any further questions you may have. Thank you for your trust and I wish you success in preparing your corporation tax return.
Sincerely,
Mia Köhler
