Post by account_disabled on Mar 12, 2024 6:14:40 GMT
Company so that it can carry out its business activities and obtain revenue. The fact that a certain expense is recorded as an expense, reducing the accounting result, does not imply its deductibility for purposes of calculating income tax. Thus, there is the general deductibility rule provided for in article 47 of Law no. 4,506/64 by which expenses not included in costs, necessary for the company's activity and the maintenance of the production source, are operational. In addition to the aforementioned general rule for deducting expenses, there are a series of specific rules, such as the rules for deductibility of gifts and samples.
In this article, the focus will be solely and exclusively on the deductibility of expenses with free samples, even though the "free lunch" allegory may fit to a greater or lesser extent with both samples and gifts. Article 54 of Law no. 4,506/64 [2] specifically deals with the Belgium Phone Number Data deductibility of advertising expenses in the income tax calculation base, when they are directly related to the activity carried out by the company. Among the advertising hypotheses contained in the aforementioned legal provision, expenses related to samples are expressly listed, more precisely in article.
It is worth noting that the samples in reference may refer to those distributed free of charge by chemical or pharmaceutical laboratories, but also to those distributed by other companies that use this sales promotion system for their products. The aforementioned legal provision also determines that for samples to be deductible, it is essential that the distribution of samples is recorded in the company's books, at the actual cost price; (ii) the output of the samples is documented with the issuance of the corresponding invoices; and (iii) the value of the samples distributed each year does not exceed the limits established by the Income Tax Division currently the Federal Revenue of Brazil up to a maximum of 5% of the gross revenue obtained from the sale of the products, with a view to nature of the business.
In this article, the focus will be solely and exclusively on the deductibility of expenses with free samples, even though the "free lunch" allegory may fit to a greater or lesser extent with both samples and gifts. Article 54 of Law no. 4,506/64 [2] specifically deals with the Belgium Phone Number Data deductibility of advertising expenses in the income tax calculation base, when they are directly related to the activity carried out by the company. Among the advertising hypotheses contained in the aforementioned legal provision, expenses related to samples are expressly listed, more precisely in article.
It is worth noting that the samples in reference may refer to those distributed free of charge by chemical or pharmaceutical laboratories, but also to those distributed by other companies that use this sales promotion system for their products. The aforementioned legal provision also determines that for samples to be deductible, it is essential that the distribution of samples is recorded in the company's books, at the actual cost price; (ii) the output of the samples is documented with the issuance of the corresponding invoices; and (iii) the value of the samples distributed each year does not exceed the limits established by the Income Tax Division currently the Federal Revenue of Brazil up to a maximum of 5% of the gross revenue obtained from the sale of the products, with a view to nature of the business.