What is the tax base for that tax (profits pursuant to commercial accounts subject to adjustments; other tax base)?
In general terms, the tax base is calculated pursuant to commercial accounts with certain adjustments. The tax base is gross taxable income of the company less deductible expenses. Deductions include all necessary expenses to produce taxable income, among them: salaries and bonuses paid to employees; interest; bad debts; depreciation; compensations to directors; and fees for technical services. Certain deductions allowed under commercial rules are disallowed for tax purposes. For example, bad debts on which the taxpayer has not initiated a formal judicial collection process are not deductible.
Related Questions
- Will the federal income tax withholding, FICA tax, and FUTA tax adjustments for increased wages be subject to interest-free adjustments under IRC Section 6205?
- What is the tax base for that tax (profits pursuant to commercial accounts subject to adjustments; other tax base)?
- Do the adjustments to the deferred tax accounts for the implementation of SFAS 109 fall within this restriction?
