What is included under various financial costs and bank charges?
Various financial costs and bank charges cover a wide range of expenses you incur to manage your financial affairs. These may include periodic charges for maintaining your bank account, administrative charges from a leasing company, or rental company charges. Some common examples are:
- Bank charges: Costs for maintaining a business bank account, transaction fees, and payment card fees.
- Administrative costs: Fees charged by financial institutions for services such as transfers, credit lines, and loans.
Financial costs and bank charges as 100% deductible professional expenses
The costs for financial services and bank charges can be considered professional expenses and are 100% tax deductible. For self-employed people and sole proprietors, these expenses are often a fixed part of their monthly or yearly business expenses. Here are some important points to keep in mind:
- Necessity: The costs must be necessary for your business activities. For example, bank charges for a business account
- Documentation: Keep all invoices and proof of payment from these costs. This is essential to demonstrate that these expenses are professional. For example, monthly bank statements.
Via the accounting platform Dexxter, you can immediately book these costs in the specifically designated category ‘Various financial costs and bank charges’, so that everything is ready for your return and you have insight into your financial costs.
