Post by account_disabled on Mar 14, 2024 5:38:38 GMT -5
Unfortunately there is no clear list of such situations in the regulations. What about non-taxable ones? Remember that for certain penalties and damages the statute excludes them directly from tax-deductible expenses. These are the penalties listed in Article. Section Article 1 of the Corporate Income Tax Code The consequences of this are defects in the goods delivered and the work and services performed, delays in the delivery of goods without defects and delays in the elimination of defects in the goods or in the work and services performed. This clause is therefore a closed list which means that in the event that one of the above headings results.
In a contractual penalty it will never constitute a tax cost and the guilt condition is irrelevant here. It is important that this catalog mainly deals with economic events caused by defects in goods or works and AWB Directory services that are the subject of commercial activities. In this case the defect is the fundamental reason for deducting the expenses incurred from the tax costs. Therefore, legislators excluded these expenses from tax-exempt costs and did not want to reward cases of improper performance of obligations. Therefore contractual penalties and other damages not listed in the closed catalog contained in Art. Section 1 of the Corporate Income.
Tax Law provides that if there is a causal relationship between a penalty or compensation and the possibility of obtaining revenue, it may constitute a cost of obtaining revenue. Are liquidated damages taxes? Unfortunately, the answer to this question is not simple and obvious. When deciding to include contractual penalties in tax costs remember that it should always be supported by a solid analysis of the reasons why the penalty was incurred and the legal and business case for it being properly documented.
In a contractual penalty it will never constitute a tax cost and the guilt condition is irrelevant here. It is important that this catalog mainly deals with economic events caused by defects in goods or works and AWB Directory services that are the subject of commercial activities. In this case the defect is the fundamental reason for deducting the expenses incurred from the tax costs. Therefore, legislators excluded these expenses from tax-exempt costs and did not want to reward cases of improper performance of obligations. Therefore contractual penalties and other damages not listed in the closed catalog contained in Art. Section 1 of the Corporate Income.
Tax Law provides that if there is a causal relationship between a penalty or compensation and the possibility of obtaining revenue, it may constitute a cost of obtaining revenue. Are liquidated damages taxes? Unfortunately, the answer to this question is not simple and obvious. When deciding to include contractual penalties in tax costs remember that it should always be supported by a solid analysis of the reasons why the penalty was incurred and the legal and business case for it being properly documented.