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> it's easy to spend money until there are no 'profits'. It depends. In some countries it is easy, it others it isn’t. Depends on what can be counted as an exp
by rad_gruchalski 4y ago
> it's easy to spend money until there are no 'profits'.
It depends. In some countries it is easy, it others it isn’t. Depends on what can be counted as an expense and what part of that purchase can be accounted for in a given fiscal year depending on when it was purchased…
For example. Germany. If a company buys computer equipment in December, they cannot deduct 100% of the value for the fiscal year that is about to finish because that computer equipment cannot be reasonably used for the whole fiscal year. So a company can deduct 1/12th of the value. Of course the reminder can be deducted in the following year but the profit is already affected for the previous year. And don’t get me even started on advance taxes companies have to pay.