How to confirm the costs on the SP

Individual entrepreneurs in the provision of data on incomes to the tax service you must also confirm the coststhat are associated with entrepreneurial activity, to reduce income tax.

You will need

• - the documents concerning the expenses;
• - the documents confirming the justification of costs.

Instruction

1. To confirm the expense of individual entrepreneurship contact the tax service by place of residence and find out what documents you need to prepare. Before you provide documentation of the expenses to the tax authorities, contact a friend the lawyer and find out whether your expenses are justified.
2. Also prepare documents to justify the expenses. Despite the fact that it is not always possible, collect the maximum number of documents to avoid further problems. For example, if you bought drinking water, then the contract for its purchase, attach a certificate from the state that tap water does not meet the standard of drinking.
3. Also remember that all expensesthat you want to confirm, should meet the criteria presented in the articles 221 and 252 of the Tax Code, namely:- expenses must be economically justified;- the costs must be associated with the activities aimed at receiving income.
4. If you have to prove economic justifiability of expenses, find a good lawyer. You should know that the concept of economic justification is not spelled out in any of the existing Russian legislation, so this concept is subjective and a good attorney will help you defend your case. So don't be afraid, even if you have not received any economic benefits from their spending: most often the courts reject the claims of the tax authorities on this issue.
5. Know this: the economic justification of expenses is not always determined by what they are going to receive income. Sometimes it may be associated with the need for the taxpayer, for example:- costs savings;- expenditure on improving the efficiency of operating personnel;- costsassociated with execution of the contract, etc.