I have a question to all self-employed people or accountants. :-)
I had a debate about tax deductible costs here and I searched for some clarification online.... this is the only thing I found so far:
Tax deductible costs
In order to be recognised as tax deductible cost, an expenditure incurred by a taxpayer should jointly meet the following criteria:
- the expenditure was incurred with purpose of generating income, retaining or protecting sources of income,
- it is not listed in the catalogue of expenditures not being tax-deductible costs.
The revenue earning costs can be classified as direct costs or other costs.
As a rule, direct costs are deductible in the tax year in which the related revenue was earned. Other costs are deductible on the date they were incurred.
Tax deductible costs incurred in foreign currencies, should be converted into PLN on the basis of the average exchange rates of the National Bank of Poland from the last working day preceding the day the costs were incurred.
This is obviously not very specific and I cannot find the actual catalogue of expenditures not being tax-deductible costs
. Is this available anywhere? I don't mind if it is in Polish.
Google translate will help I am sure. :-)
The actual question is.... can someone who is i.e a self-employed English teacher (no employees) claim for teas, coffees, juices as a monthly cost? Or would this not be seen as purpose of generating income. I guess you could argue that a person has to drink and provide drinks for his students being taught at home?
Thanks for your replies.