 {"id":731,"date":"2022-10-28T22:49:18","date_gmt":"2022-10-28T20:49:18","guid":{"rendered":"https:\/\/www.altertax-avocats.com\/?p=731"},"modified":"2022-12-23T21:13:50","modified_gmt":"2022-12-23T20:13:50","slug":"what-are-the-deductible-expenses-for-a-company","status":"publish","type":"post","link":"https:\/\/www.altertax-avocats.com\/en\/what-are-the-deductible-expenses-for-a-company\/","title":{"rendered":"What are the deductible expenses for a company?"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; collapsed=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;|40px|||false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_post_title date_format=&#8221;j-m-y&#8221; comments=&#8221;off&#8221; featured_image=&#8221;off&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; title_text_color=&#8221;#11677A&#8221; title_font_size=&#8221;32px&#8221; custom_margin=&#8221;||30px||false|false&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_post_title][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;Quicksand||||||||&#8221; link_text_color=&#8221;#666666&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_38209612\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38503155\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<p>For a company, deductible expenses are expenses incurred in the production of goods and services that can be deducted from taxable income. On the contrary, other expenses can be added back to the result, so it is important for the manager to identify these expenses.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_font_size=&#8221;33px&#8221; header_2_font=&#8221;|600|||||||&#8221; header_2_text_color=&#8221;#11677A&#8221; header_2_font_size=&#8221;30px&#8221; custom_margin=&#8221;20px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_35717274\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38503230\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38503230\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<h2 class=\" font-bold\"><span class=\"element-title-inner\">List of deductible expenses for companies<\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;rgba(17,154,178,0.59)&#8221; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; width=&#8221;33%&#8221; module_alignment=&#8221;left&#8221; custom_margin=&#8221;5px||||false|false&#8221; custom_padding=&#8221;0px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;Quicksand||||||||&#8221; link_text_color=&#8221;#666666&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_38209612\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38503233\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38503233\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<p>A company can deduct some of its expenses including the following:<\/p>\n<ul role=\"list\">\n<li aria-setsize=\"-1\" data-aria-level=\"1\" data-aria-posinset=\"1\" data-font=\"Garamond\" data-leveltext=\"-\" data-list-defn-props=\"{\" 335552541=\"\" :1=\"\" 335559684=\"\" :-2=\"\" 335559685=\"\" :720=\"\" 335559991=\"\" :360=\"\" 469769226=\"\" :=\"\" garamond=\"\" 469769242=\"\" 8226=\"\" 469777803=\"\" left=\"\" 469777804=\"\" -=\"\" 469777815=\"\" hybridmultilevel=\"\" data-listid=\"1\" role=\"listitem\">\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{74}\" paraid=\"124887433\"><span style=\"color: #666666;\">Purchases of materials and goods or similar products.<\/p>\n<\/li>\n<li aria-setsize=\"-1\" data-aria-level=\"1\" data-aria-posinset=\"1\" data-font=\"Garamond\" data-leveltext=\"-\" data-list-defn-props=\"{\" 335552541=\"\" :1=\"\" 335559684=\"\" :-2=\"\" 335559685=\"\" :720=\"\" 335559991=\"\" :360=\"\" 469769226=\"\" :=\"\" garamond=\"\" 469769242=\"\" 8226=\"\" 469777803=\"\" left=\"\" 469777804=\"\" -=\"\" 469777815=\"\" hybridmultilevel=\"\" data-listid=\"1\" role=\"listitem\">\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{89}\" paraid=\"257721207\"><span style=\"color: #666666;\">The current expenses during the fiscal year that the General Tax Code qualifies as &#8220;general expenses&#8221;.<\/p>\n<\/li>\n<li aria-setsize=\"-1\" data-aria-level=\"1\" data-aria-posinset=\"2\" data-font=\"Garamond\" data-leveltext=\"-\" data-list-defn-props=\"{\" 335552541=\"\" :1=\"\" 335559684=\"\" :-2=\"\" 335559685=\"\" :720=\"\" 335559991=\"\" :360=\"\" 469769226=\"\" :=\"\" garamond=\"\" 469769242=\"\" 8226=\"\" 469777803=\"\" left=\"\" 469777804=\"\" -=\"\" 469777815=\"\" hybridmultilevel=\"\" data-listid=\"1\" role=\"listitem\">\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{108}\" paraid=\"323550159\"><span style=\"color: #666666;\">Depreciation of the company&#8217;s investments.<\/p>\n<\/li>\n<li aria-setsize=\"-1\" data-aria-level=\"1\" data-aria-posinset=\"3\" data-font=\"Garamond\" data-leveltext=\"-\" data-list-defn-props=\"{\" 335552541=\"\" :1=\"\" 335559684=\"\" :-2=\"\" 335559685=\"\" :720=\"\" 335559991=\"\" :360=\"\" 469769226=\"\" :=\"\" garamond=\"\" 469769242=\"\" 8226=\"\" 469777803=\"\" left=\"\" 469777804=\"\" -=\"\" 469777815=\"\" hybridmultilevel=\"\" data-listid=\"1\" role=\"listitem\">\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{117}\" paraid=\"646314321\"><span style=\"color: #666666;\">Future expenses and losses: provisions.<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_font_size=&#8221;33px&#8221; header_2_font=&#8221;|600|||||||&#8221; header_2_text_color=&#8221;#11677A&#8221; header_2_font_size=&#8221;30px&#8221; custom_margin=&#8221;20px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_35717274\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<h2><span>Conditions for deduction of expenses for a company<\/span><\/h2>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;rgba(17,154,178,0.59)&#8221; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; width=&#8221;33%&#8221; module_alignment=&#8221;left&#8221; custom_margin=&#8221;5px||||false|false&#8221; custom_padding=&#8221;0px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;Quicksand||||||||&#8221; link_text_color=&#8221;#666666&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_38209612\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38209656\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{146}\" paraid=\"1292283148\">In order to be deducted from the taxable income of a company, expenses must meet certain conditions, i.e. they must be incurred in the direct interest of the company, they must be deducted from the company&#8217;s net assets and they must be properly accounted for in the current financial year with sufficient supporting documentation.\u00a0\u00a0<\/p>\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{186}\" paraid=\"1098258576\">For example, a company can deduct meal expenses, travel expenses, advertising expenses, etc. from its income.\u00a0\u00a0<\/p>\n<p paraeid=\"{ae39efce-d67c-4c4c-8b1b-31bf894f8443}{200}\" paraid=\"1636165607\">Caution: in the absence of sufficient supporting documents, the tax authorities are entitled to reinstate (in the taxable income) the amount of the expenses in question<a href=\"https:\/\/alyoda.eu\/index.php?id=1957&amp;file=1\" rel=\"noreferrer noopener\" target=\"_blank\">(CE, decision of July 7, 1958, req. n\u00b0 36425<\/a>).\u00a0\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_font_size=&#8221;33px&#8221; header_2_font=&#8221;|600|||||||&#8221; header_2_text_color=&#8221;#11677A&#8221; header_2_font_size=&#8221;30px&#8221; custom_margin=&#8221;20px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_35717274\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38209663\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38503252\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38503252\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<h2 class=\" font-bold\"><span class=\"element-title-inner\">The exercise of the deduction<\/span><\/h2>\n<\/div>\n<\/div>\n<div id=\"container_38503255\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"container_38503255\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;rgba(17,154,178,0.59)&#8221; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; width=&#8221;33%&#8221; module_alignment=&#8221;left&#8221; custom_margin=&#8221;5px||||false|false&#8221; custom_padding=&#8221;0px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;Quicksand||||||||&#8221; link_text_color=&#8221;#666666&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_38209612\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38209656\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38503255\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38503255\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<p>Not all expenses deductible by companies are subject to the same tax regime, for example overheads are deducted directly and in full in the current year, whereas depreciation is deducted over several years. In addition, overhead expenses are subject to special measures, which are intended to ensure the control of certain expenses and to prohibit the deduction of excessive or unjustified expenses.\u00a0\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_font_size=&#8221;33px&#8221; header_2_font=&#8221;|600|||||||&#8221; header_2_text_color=&#8221;#11677A&#8221; header_2_font_size=&#8221;30px&#8221; custom_margin=&#8221;20px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_35717274\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38209663\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38210321\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<div id=\"container_38503258\" class=\" sb-bloc sb-bloc-level-3 bloc-element-title  \">\n<div class=\"element element-title sb-vi-text-left theme-skin\">\n<h2 class=\" font-bold\"><span class=\"element-title-inner\">Limited deduction and control of certain expenses<\/span><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;rgba(17,154,178,0.59)&#8221; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; width=&#8221;33%&#8221; module_alignment=&#8221;left&#8221; custom_margin=&#8221;5px||||false|false&#8221; custom_padding=&#8221;0px||||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;Quicksand||||||||&#8221; link_text_color=&#8221;#666666&#8243; header_3_font=&#8221;Quicksand|600|||||||&#8221; header_3_text_color=&#8221;#F3944E&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_38209612\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38209656\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38210919\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<p paraeid=\"{b3310c47-5533-4436-8d85-59d4d422fd8c}{42}\" paraid=\"1209634705\">A certain number of conditions are required for the deductibility of overhead expenses by the legislator and even by case law. This is done in order to fight against the abuse of the deduction of certain expenses which often benefit the managers more than the company itself. This is the case, for example, of sumptuary expenses (art 39-4 CGI), financial penalties (art 39-2 CGI), and certain taxes that directly affect the company&#8217;s profit (income tax, CRDS, etc.)\u00a0\u00a0<\/p>\n<p paraeid=\"{b3310c47-5533-4436-8d85-59d4d422fd8c}{94}\" paraid=\"1406174988\">In principle, the tax law states that sumptuary expenses are not deductible because they are deemed to be extraneous to business. This may include boats and residences for pleasure, non-professional fishing or hunting activities. But some expenses may be deductible if they are related to the management of the business.\u00a0\u00a0<\/p>\n<p paraeid=\"{b3310c47-5533-4436-8d85-59d4d422fd8c}{130}\" paraid=\"437470415\">The Council of State admitted the expenses related to the maintenance and depreciation of a yacht because the company had proved that it constituted professional offices<a href=\"https:\/\/www.legifrance.gouv.fr\/ceta\/id\/CETATEXT000007615604\" rel=\"noreferrer noopener\" target=\"_blank\">(Council of State, 7 \/ 8 SSR, of November 8, 1978, 04233<\/a>.&#8221;The expenses incurred in order to obtain the disposal and to ensure the maintenance of a yacht are excluded from the deductible expenses, unless justified. This justification is provided by the company which establishes that this yacht was only used to house its local agency located in a coastal city.&#8221;)\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][dsm_text_divider header=&#8221;@&#8221; color=&#8221;#666666&#8243; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;20px||||false|false&#8221; global_colors_info=&#8221;{}&#8221;][\/dsm_text_divider][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; text_font=&#8221;Quicksand||||||||&#8221; link_text_color=&#8221;#666666&#8243; header_3_font=&#8221;|600|||||||&#8221; header_3_text_color=&#8221;#F3944E&#8221; header_3_font_size=&#8221;20px&#8221; header_3_line_height=&#8221;1.2em&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<div id=\"container_38209612\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38209656\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<div id=\"container_38210919\" class=\" sb-bloc sb-bloc-level-3 bloc-element-text  \">\n<div class=\"element element-text displayed_in_1_column\" spellcheck=\"true\">\n<h3><strong><span class=\"color-c-2\">The tax authorities reserve the right to add back expenses deemed excessive and unlawful to the taxable income of the audited years. So don&#8217;t hesitate to ask for advice from a tax lawyer like Altertax Avocats before receiving a tax adjustment proposal with the corresponding adjustments. Altertax will advise you on the appropriateness of a deduction or during your tax audit<\/span><\/strong><span>.\u00a0\u00a0<\/span><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/et_pb_text][et_pb_contact_form use_spam_service=&#8221;on&#8221; email=&#8221;contact@altertax-avocats.com&#8221; success_message=&#8221;Your message has been sent with success !&#8221; submit_button_text=&#8221;Send&#8221; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; _unique_id=&#8221;978eacfd-f9b5-411a-b3ec-4c143ead69e3&#8243; form_field_background_color=&#8221;RGBA(255,255,255,0)&#8221; custom_button=&#8221;on&#8221; button_text_size=&#8221;17px&#8221; button_text_color=&#8221;#FFFFFF&#8221; button_bg_color=&#8221;#F3944E&#8221; button_border_color=&#8221;#F3944E&#8221; button_border_radius=&#8221;25px&#8221; button_use_icon=&#8221;off&#8221; border_width_bottom=&#8221;1px&#8221; global_colors_info=&#8221;{}&#8221; button_border_color__hover_enabled=&#8221;on|desktop&#8221; 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