1- DEDUCTIBLE EXPENSES ACCORDING TO INCOME TAX LAW
Income is taxed through net profit.
In order to determine the net profit, the expenses stated below should be accepted to deduct:
1- General expenses
2- Expenses related to the staff
3- Losses, damages and indemnities related to work
4- Travel and residence expenses
5- Vehicle expenses
6- Tax-in-kind, levies and charges
7- Amortizations
8- Fees paid to employers’ associations
9- Fees paid for personal retirement insurance
10- Donations made to associations and foundations making food banking
2- DEDUCTIBLE EXPENSES ACCORDING TO CORPORATE TAX LAW
In the determination of company’s income calculated like commercial income, a tax payer can deduct expenses stated below from its revenue.
1- Stock certificates and export cost of bonds
2- Incorporation and organizational costs
3- General meeting, business combinations, denouncement and liquidation costs
4- Insurance costs
5- Profit shares of partnership of commendams
6- R&D discount
7- Creditors without interest-fee and profit shares paid to private financial institutions
3- LOSS OFFSETTING AND OTHER DISCOUNTS
3.1- Loss offsetting
3.1.1- Previous losses
3.1.2- Losses of acquired company
3.1.3- Overseas losses
3.2- Donations and subsidies
3.3- Sponsorship costs
3.4- Dividends
Source: Corporate Tax Law numbered 5520 – Income Tax Law numbered 193
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