Certain conditions must be met in order for financial activity to be considered as taxable and the taxpayer to be entitled to deductions for their actual expenses:
The enterprise must:
- be carried on at the business’s own expense and risk
- have a certain scope
- be likely to generate a surplus over time
- be aimed at having a particular duration.
From the first year in which your commercial activity is considered to be taxable, all your income from the enterprise will be taxable and all costs linked to the enterprise will be deductible. Any deficit within the enterprise will be deducted from other taxable income.
Up to five years’ start-up period
During the year you are assessed as a business, you can have up to the previous five years approved as start-up years for your business. In such cases, you will be able to have the tax assessment for these years amended, and claim deductions for your actual start-up costs.