Self-employed contributions cannot be deducted if they are not paid
Posted: Thu Dec 26, 2024 4:41 am
The principle that allows the deduction of an expense in the economic activity is that it is necessary for obtaining income and that the company is in possession of the receipt (invoice or equivalent document) that accredits it. In principle, whether or not the expense is paid is not a requirement for its deductibility .
However, there are some expenses whose nature is linked to payment. One of them is the self-employed fee .
It is common for the self-employed to deduct their social expenses automatically, including the amount in the corresponding quarter according to the accrual principle . This can cause that, if there is a delay in the payment of the fees, the situation is not taken into account when calculating the quarterly advance payments.
For the purposes of canada whatsapp shopping data Personal Income Tax, only those self-employed fees that are paid or guaranteed by means of a deferral are admitted as deductible Social Security expenses . If we include the fees in the payments on account without taking into account their liquidation, we will have to make an adjustment in the annual IRPF declaration, subtracting from expenses the amount of those that appear as debt.
The second option would be to deduct the paid fees in the quarterly form, without taking into account their accrual date. We could find that in one quarter we can deduct fewer fees than those accrued and in another we have the opposite situation because we have paid bills after the deadline. We must also take into account that surcharges and interest arising from late payment are not deductible . In any case, if we ask for the tax data to make the Income Tax Return, we will see that it only shows the amount of self-employed paid in the year, so we can use that amount as a guide to regularize the year.
However, there are some expenses whose nature is linked to payment. One of them is the self-employed fee .
It is common for the self-employed to deduct their social expenses automatically, including the amount in the corresponding quarter according to the accrual principle . This can cause that, if there is a delay in the payment of the fees, the situation is not taken into account when calculating the quarterly advance payments.
For the purposes of canada whatsapp shopping data Personal Income Tax, only those self-employed fees that are paid or guaranteed by means of a deferral are admitted as deductible Social Security expenses . If we include the fees in the payments on account without taking into account their liquidation, we will have to make an adjustment in the annual IRPF declaration, subtracting from expenses the amount of those that appear as debt.
The second option would be to deduct the paid fees in the quarterly form, without taking into account their accrual date. We could find that in one quarter we can deduct fewer fees than those accrued and in another we have the opposite situation because we have paid bills after the deadline. We must also take into account that surcharges and interest arising from late payment are not deductible . In any case, if we ask for the tax data to make the Income Tax Return, we will see that it only shows the amount of self-employed paid in the year, so we can use that amount as a guide to regularize the year.