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How should all expenses related to the generation of income be formalized?
How should all expenses related to the generation of income be formalized?
We inform you that, according to Article 108.1 of the Tax Code, all expenses related to income generation, as well as mandatory payments stipulated by law, are deducted from income, except for those expenses that are not deductible under this chapter. Expenses deducted from income must be formalized in accordance with the procedures established by law. Expenses not formalized in the manner prescribed by law cannot be deducted from income.
Please note that, according to Article 109.8 of the Tax Code, the limit for expenses deducted from income for purchases made from individuals not registered as tax payers with the tax authority, except for goods specified in Article 3.5 of the Law of the Republic of Azerbaijan on "Cashless Settlements," as well as real estate, vehicles, and movable assets, is restricted to a maximum of 2% of the highest of the taxpayer’s annual income and expenses for each case. Any amount exceeding this limit will not be deducted from income.
We inform you that, according to Article 108.1 of the Tax Code, all expenses related to income generation, as well as mandatory payments stipulated by law, are deducted from income, except for those expenses that are not deductible under this chapter. Expenses deducted from income must be formalized in accordance with the procedures established by law. Expenses not formalized in the manner prescribed by law cannot be deducted from income.
Please note that, according to Article 109.8 of the Tax Code, the limit for expenses deducted from income for purchases made from individuals not registered as tax payers with the tax authority, except for goods specified in Article 3.5 of the Law of the Republic of Azerbaijan on "Cashless Settlements," as well as real estate, vehicles, and movable assets, is restricted to a maximum of 2% of the highest of the taxpayer’s annual income and expenses for each case. Any amount exceeding this limit will not be deducted from income.