Contents / income and expenses recognition

INCOME AND EXPENSES RECOGNITION

Income and expenses are recognised by cash method (upon payment only)

ORDER OF RECOGNITION OF EXPENSES FOR THE OBJECT OF TAXATION "INCOME MINUS EXPENSES"

The list of deductible expenses for the simplified system of taxation is exhaustive.
Not all expenses deductible under the general system of taxation may be deducted under the simplified system of taxation.
When the simplified system of taxation is applied, expenses on fixed assets acquiring are deducted in the same tax period and are not carried forward through depreciation.


	EXPENSES


	Expenses deductible in the same order as for the purposes of tax on profit: material payroll expenses cost of purchased goods some other expenses


	Expenses deductible in other way than for the purposes of tax on profit: expenses on fixed assets acquiring and their repairing (including leased fixed assets) expenses on intangible assets acquiring lease payments (including financial lease payments) VAT on purchased goods (works and services)

Other payments may not be deducted from the tax base (in particular recruiting and training expenses)

	“Input” VAT
	since VAT is not paid by taxpayers applying the simplified system of taxation, "input" VAT may be deducted from the tax base