Intangible services – such as marketing services or legal services – belong to the frequent and high expenses of entrepreneurs. Under certain conditions, they can be classified as tax deductible expenses.
The proper documentation of expenses on intangible services, in accordance with relevant regulations is essential, so it is possible to unequivocally state that incurred expense was related to business activity and it was deliberate. Often entrepreneurs try to get additional tax benefits by incurring fictitious costs. That is the reason why tax authorities examine documentation very carefully and they usually contest all questionable expenses.
When it comes to proper documentation, the most important is to have all signed contracts, invoices, etc. What’s more, it is worth to provide evidence of execution of these services by presenting e-mail correspondence, reports or even notes.
CGO Legal offers consulting services in the field of intangible services as tax deductible expenses. We also assist in keeping the proper documentation.
For more detailed information feel free to contact us.