Dear
Is it correct that an expense that is 100% deductible is only deducted for half of the personal income tax?
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Dear
Is it correct that an expense that is 100% deductible is only deducted for half of the personal income tax?
I think this has already been discussed here, not 100% sure 8-)
But personal income tax is your tax and therefore counts (roughly speaking) as 50%. So it makes sense that if you enter an expense that is 100% deductible, the impact on your personal income tax is only 50%.
Let's say you had a profit of 100 euro and had to pay 50 euro (50% taxes) in personal income tax on that.
You enter an expense of 20 euros that is 100% deductible.
Your profit drops to 80 euros and you only have to pay 40 euros in personal income tax on that.
So it seems correct to me 8-)</
It has indeed happened before, the impact on your personal income tax is what you "save" in taxes.
Thank you!
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.