What are deductible expenses?
Deductible expenses are those that companies or individuals can subtract from their gross income to reduce the taxable income tax base. That is to say, they are those necessary for the development of an activity that benefits the company, and are duly supported with evidentiary documentation.
Importance of justifying them
Properly justifying deductible expenses is essential to avoid problems with SUNAT. The lack of support, such as receipts or contracts, may result in tax assessments, fines or adjustments in the tax return. Therefore, it is crucial to have orderly documentation in accordance with the legal provisions in force. In this regard, SUNAT has published the “Guía de Referencia – Fehaciencia de Gastos” (Reference Guide – Reliability of Expenses), which presents a list of suggested evidentiary means that can be used to prove the reliability (reality) of certain business expenses.
Consequences of not justifying expenses
Failure to justify an expense may generate tax assessments that impact the income tax calculation. In addition, SUNAT could apply from possible fines to initiate audits, which represents a financial risk and additional burden of proof for any business.
Recommendations
In order to guarantee a correct deduction of expenses, companies should:
- Hace valid payment vouchers.
- Ensure that the expenses are directly related to their economic activities.
- Keep an orderly file of supporting documents.
- Review the “Fehaciencia Guide” prepared by SUNAT.
How to avoid tax contingencies?
At VAG Global, we offer you specialized advice for tax management and regulatory compliance. Our team helps you to identify, register and correctly justify your deductible expenses, reducing risks before SUNAT audits.
Contact us now to protect your business and optimize your tax burden.
Source: Andina