Individual entrepreneurs, when submitting data on income to the tax service, must also confirm the expenses that are associated with entrepreneurial activity in order to reduce income tax.
It is necessary
- - documents on expenses;
- - documents confirming the justification of expenses.
Instructions
Step 1
To confirm the expenses of individual entrepreneurship, contact the tax office at your place of residence and find out what documents you need to prepare. Before submitting documents on expenses to the tax authorities, contact a lawyer you know and find out if your expenses can be considered justified.
Step 2
Also prepare documents on justification of expenses. Although this is not always possible, collect as many documents as possible in order to avoid problems in the future. For example, if you bought drinking water, then attach a certificate from the State Sanitary and Epidemiological Supervision to the agreement on its purchase that the tap water does not meet the drinking standard.
Step 3
Also remember that all expenses that you want to confirm must meet the criteria that are presented in Articles 221 and 252 of the Tax Code, namely: - the costs must be economically justified; - the costs must be related to activities that are aimed at generating income.
Step 4
Find a good lawyer if you have to prove the cost is economically viable. You should know that the concept of economic justification is not spelled out in any of the current acts of Russian legislation, so this concept is subjective and a good lawyer will help you defend your case. So do not be afraid, even if you have not received any economic effect from your expenses: more often than not, the courts reject tax claims on this issue.
Step 5
Know: the economic justification of spending is not always determined by the fact that it is directed towards generating income. Sometimes it may be related to the need for the taxpayer, for example: - costs of saving funds; - costs of improving the efficiency of management personnel; - costs associated with the fulfillment of the terms of the contract, etc.
