Consequently, representation expenses must be differentiated from gifts or expenses not necessary for the development of economic activity, such as gifts made to persons not linked to the company, which would not be deductible according to the LIS.
However, expenses incurred in accordance with customs and practices regarding company personnel are still fully deductible . Therefore, we do not have to worry about the typical Christmas baskets given to employees. We can request an invoice and deduct them, just as we did until now.
The issue of travel and subsistence phone number in saudi arabia allowances has always been a cause of controversy and headaches for self-employed entrepreneurs . The reason is that their treatment is often similar to that received on the payrolls of salaried workers.
According to article 9 of the Personal Income Tax Regulations , certain amounts allocated by the company to offset the travel, food and accommodation expenses of the employee who travels outside the workplace are exempt from tax. To do so, they must meet certain conditions and limits specified in the Regulations.
However, this regulation is only applicable to salaries. A self-employed person who invoices his client for travel expenses cannot benefit from it.