Representation expenses deductible and roofed with limitation to 75%
This is the cost of meals and lodging within the new definition of representation expenses (co.1 article 1 of Decree 19 November 2008). As the question of expenses, for they are deprived of the deduction of VAT under the terms established by lett.h) of Article 19-bis 1 of the VAT Decree. For the purposes of direct taxation such expenses, in addition to checking the ceiling for deductibility, serving the limited deductibility of 75% (as confirmed by the Inland Revenue with the CM n.53/E/08).
In regard to the relationship between the two limitations, including through the clarifications by the Inland Revenue in relation n.53/08 CM professionals, proceed as follows:
1. the reduction to 75% of project costs
2. calculate the upper limit of deductibility;
3. take the lower amount if it remains within the ceiling;
4. take the roof if the reduced amount is higher.
Case 1 In regard to the relationship between the two limitations, including through the clarifications by the Inland Revenue in relation n.53/08 CM professionals, proceed as follows:
1. the reduction to 75% of project costs
2. calculate the upper limit of deductibility;
3. take the lower amount if it remains within the ceiling;
4. take the roof if the reduced amount is higher.
METHOD OF CALCULATING THE MAXIMUM RATE OF DEDUCTIBLE EXPENSES
A typical company's revenue in the period 2009 € 1,000,000
B accommodation and food costs (related) incurred in 2009 € 10,000
C Amount of expenses for board and lodging relevant (75% of B) € 7,500 maximum deductible limit
D (1.3% of A) € 13.000
E Importo effettivamente deducibile € 7.500
2° CASO
MODALITÀ DI CALCOLO DELLA QUOTA MASSIMA DI SPESA DEDUCIBILE
A Ricavi tipici dell’azienda nel periodo 2009 € 1.000.000
B Spese di vitto e alloggio (inerenti) sostenute nel 2009 € 19.000
C Importo delle spese di vitto e alloggio rilevanti (75% di B) € 14.250
D Limite massimo di deducibilità (1,3% di A) € 13.000
Spese di rappresentanza con tetto di deducibilità senza limitazione al 75%
These are the charges other than the board and from your (eg. Those of travel) within the new definition of representation expenses (co.1 article 1 of Decree 19 November 2008).
As the question of expenses, for they are deprived of the deduction of VAT under the terms established by lett.h) of Article 19-bis 1 of the VAT Decree.
For the purposes of direct taxation such expenditure serving only the limited deductibility of 75% (as confirmed by the Inland Revenue with the CM n.53/E/08).
As the question of expenses, for they are deprived of the deduction of VAT under the terms established by lett.h) of Article 19-bis 1 of the VAT Decree.
For the purposes of direct taxation such expenditure serving only the limited deductibility of 75% (as confirmed by the Inland Revenue with the CM n.53/E/08).
detriment of the representation with the restriction to 75%
It living expenses and accommodation costs for customers, both actual and potential, within the new definition in article 1 of Decree co.5 November 19, 2008.
As the question of costs other than those of representation, from 1 September 2008, you can fully deduct the VAT on these expenses for the purposes of direct taxation, such charges are serving only the limited deductibility of 75% (as confirmed by 'Revenue Agency with the CM n.53/E/08).
detriment of the representation is fully deductible expenses other than room and board from your (eg. Travel expenses) incurred by customers, both actual and potential, within the new definition di cui al co.5 art.1 del decreto 19 novembre 2008.
In quanto trattasi di spese diverse da quelle di rappresentanza, a partire dal 1º settembre 2008 è possibile detrarre interamente l’Iva su tali spese Ai fini delle imposte dirette, tali spese non scontano alcuna limitazione alla deducibilità.
As the question of costs other than those of representation, from 1 September 2008, you can fully deduct the VAT on these expenses for the purposes of direct taxation, such charges are serving only the limited deductibility of 75% (as confirmed by 'Revenue Agency with the CM n.53/E/08).
detriment of the representation is fully deductible expenses other than room and board from your (eg. Travel expenses) incurred by customers, both actual and potential, within the new definition di cui al co.5 art.1 del decreto 19 novembre 2008.
In quanto trattasi di spese diverse da quelle di rappresentanza, a partire dal 1º settembre 2008 è possibile detrarre interamente l’Iva su tali spese Ai fini delle imposte dirette, tali spese non scontano alcuna limitazione alla deducibilità.
Spese NON di rappresentanza non inerenti
Si tratta di tutte quelle spese che non rientrano in alcuna delle categorie sopra individuate dal decreto 19 novembre 2008 e che, in particolare, non presentano il carattere dell’inerenza. In relazione a tali spese, di norma non deducibili, non è nemmeno consentito detrarre l’Iva. Spese di natura promozionale (pubblicità and sponsorships) These are costs which the company argued against a counter-performance (reciprocal relationship) and in relation to which it is expected to be fully deducted for income tax and full VAT deduction purposes.
