What is an Expense? — Types of costs and tax deductibility
An expense is any cost the business incurs to generate revenue — from salaries and rent to materials and depreciation. Expenses reduce the financial result and tax base.
Definition
An expense is any cost the business incurs to generate revenue — from salaries and rent to materials and depreciation. Expenses reduce the financial result and tax base.
Details
Tax-deductible expenses: salaries, rent, utilities, depreciation, accounting services, marketing, travel expenses (with documentation). Non-deductible: penalties, personal expenses, donations above 5% of revenue, entertainment above the limit. Must be documented with an invoice or receipt.
Example
Monthly DOOEL expenses: salaries 120K + rent 30K + utilities 10K + accountant 8K + marketing 15K = 183K MKD. All tax-deductible with proper documentation.