Deduction of representation costs

Definition

Managers and employees of a company are often required to meet with customers, suppliers or partners. On this occasion, they generally incur costs for tolls, parking, restaurants and other expenses. More generally, these are representation costs. We have already written a previous article on restaurant expenses, the management of which is also a recurrent subject for company directors.

Deductibility

Representation costs are deductible as long as

* they are committed to the interests of society and

* that evidence is provided.

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Do not forget to mention the names of the people you are inviting and the company they represent.

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Non-deductible expenses

Expenses that are not incurred in the interest of the company are not deductible. This also applies to so-called sumptuary, i.e. excessive or superfluous, expenses .

This includes any direct payment, flat-rate allowance or reimbursement of expenses for operations relating to :

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* Hunting and non-professional fishing.

* The provision of recreational or pleasure homes.

* The provision of yachts and pleasure boats.

* Depreciation of company vehicles above certain thresholds.

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As a reminder, these so-called sumptuary expenses are not deductible for legal entities taxed under corporate income tax or income tax as BIC.

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To be sure of the right course of action, Blendy, certified digital accountantPennylaneQuickBooks and Dext , will advise you and answer your questions. Contact our team now!