Non-deductible expenses/expenses?
Non-deductible expenses are expenses that a company can not deduct the income tax declaration, ie costs that are not tax deductible, and the company must pay income tax on expenses. Non-deductible expenses must not be confused staff benefits. What constitutes a non-deductible expenditure is governed by ITA Chapter. 9.
The adjustment for those non-deductible costs are primarily at establishing the company's skatteberäkning. If the company is not adjusted for nondeductible expenses in tax calculation as this must be related to the company to submit its inkomstskattedeklaration. Is not this the company may suffer from tax surcharge.
The adjustment is done by adding to the carrying (bokföringsmässiga) results add to those non-deductible costs. The result is that the tax profit increase, which in turn contributes to higher income tax (corporation).
How can one distinguish between “non-deductible expenses” in the records?
The most common non-deductible expenses, the following accounts (DOWN 2009) culminating in the text “nondeductible”.
Here are their most common BAS accounts used for non-deductible expenses:
Other premises costs
5090Other premises costs
5098Other premises costs, deductible
5099Other premises costs, nondeductible
Learn more about other local costs and how to bookother local costs which is non-deductible expenses.
Internal and External representation
6070 Representation
6071 Representation, deductible
6072 Representation, non-deductible
7630Personalrepresentation
7631Personalrepresentation, deductible
7632Personalrepresentation, non-deductible
Learn more about representation and how to book internal and external representation which is non-deductible expenses.
Left damages
6340Left damages
6341Left damages, deductible
6342Left damages, nondeductible
Learn more about left damages and how to bookleft damages which is non-deductible expenses.
Föreningsavgifter
6980Föreningsavgifter
6981Föreningsavgifter, deductible
6982Föreningsavgifter, nondeductible
Learn more about föreningsavgifter and how to bookföreningsavgifter which is non-deductible expenses.
Other external costs
6990Other external costs
6991Other external costs, deductible
6992Other external costs, nondeductible
Learn more about Other external costs and how to bookOther external costs which is non-deductible expenses.
Healthcare
7620Sickness- and Health
7621Sickness- and Health, deductible
7622Sickness- and Health, non-deductible
7623Health insurance, non-deductible
Read more about the disease- and health and how to book sick- and Health, which represents non-deductible expenses.
Interest expense
8420 Interest expense on short-term liabilities
8423 Interest expense for taxes and fees
Dealing with VAT the non-deductible expenses
If an expense is not deductible, it is not VAT deductible as input VAT. Hence, VAT portion of the expenses are not deductible. The above costs are reviewed in detail with coding examples.