ŞAHIS ŞİRKETİNDE GİDER GÖSTERMEK

SHOWING EXPENSES IN A SOLE PROPRIETORSHIP

What Can Be Shown as Expenses in a Sole Proprietorship?

The types of expenses that can be deducted from tax among the expense items of your sole proprietorship are as follows:

• Food and beverage expenses
• Representation and entertainment expenses
• Transportation expenses
• Car rental or purchase expenses
• Online expenses
• Office expenses
• Workplace bills
• Cargo and mail expenses
• Medical expenses

Showing Food and Beverage Expenses as Expenses

• Food expenses belonging to you and your employees can be shown as expenses and deducted from taxes.
• Your expenses for eating and drinking outside can also be shown as expenses and deducted from taxes.
• Can you show alcohol expenses as expenses? Yes. Alcohol expenses incurred at a business meeting organized for your guests can also be shown as expenses.
• The question you need to ask yourself about meal expenses should be 'Is this expense related to my business?' If your answer is yes, you can show it as an expense.
• You do not need to make food and beverage expenses during working hours in order to show them as expenses. You can show the expenses you have made for your business as expenses regardless of the time.
• An important point to be added as a note is that it is necessary to pay attention to invoicing the expenses on behalf of the company. Especially in limited and joint stock companies, the invoice must be in the name of the company.

Representation and Entertainment Expenses

• Let's say you had a job interview and then wanted to entertain the person you met or take them to a business dinner. You can show the expenses to be made in this scenario as expenses and deduct them from taxes.
• You can show the hotel expenses of the guest you entertained, the restaurant food bill, and the bills of the car rented for your guest's transportation as expenses and deduct them from taxes.

Showing Transportation Expenses as Expenses

Since transportation expenses are a cost that you have to incur for your business, they can be shown as expenses. The details of the transportation expenses that can be shown as expenses are as follows:

• You can show maintenance and repair expenses, fuel expenses, rental or purchase expenses, etc. for the vehicles you use to conduct your business as expenses.
• The vehicle must be registered in the name of the company for the vehicle expenses to be shown as expenses.
• Company owners who want to show their personal vehicle expenses as expenses for their legal entity can do so by creating a rental agreement between the company and themselves.
• Those who rent a car from car rental companies can also show this rental fee as an expense and deduct it from taxes.
• Receipts taken from public transportation vehicles such as taxis and metros can be accepted as expenses. For example, if you get a receipt for the amount you loaded on your Istanbulkart, this expense is accepted as transportation expense.
• If the person who incurs the transportation expenses is your employee, you must add these expenses to the payroll to show them as expenses.
• If you pay cash for minibuses you take in the city, you cannot show this expense as an expense. Expenses that can be shown as expenses must be documented with significant documents such as invoice, receipt, etc.

Limitation on Deducting Passenger Car Rental/Purchase Expenses and Depreciation

The monthly rental fee for each passenger car acquired through leasing up to TRY 17,000 can be shown as an expense.

For the purchased vehicles;

• The amount that can be accepted as a deduction subject to expenses; up to TRY 440,000 including special consumption tax and value-added tax,
• The amount that can be accepted as a deduction subject to depreciation; up to TRY 500,000, excluding special consumption tax and value-added tax,
• Expenses can be shown for up to TRY 950,000 in cases where taxes are added to the cost price or the passenger car is acquired second-hand.

Showing Online Expenses as Expenses

• Expenses such as software and subscriptions purchased online to perform your business can also be shown as expenses.

Office Expenses

• You can show the expenses you have made for your office as expenses. For example; expenses made for products such as desks, chairs, computers, etc. purchased for use in the office can be shown as expenses.
• Decoration expenses made in the office are also among the expenses that can be shown as expenses.
• Fixed assets expenses up to TRY 4,400 can be shown as expenses in one go for office expenses. However, assets purchased at a value above this amount are shown as expenses by the depreciation method. Depreciation, also called wear and tear, is applied by allocating a certain portion of the expense according to the useful life of a product.
• It is possible to show the transportation expenses incurred while setting up your office or moving to a new location as expenses.

Showing Workplace Bills as Expenses

Electricity, water, natural gas, and internet bills that come to your workplace can be shown as expenses. If you are working from home, your workplace will be your home, so you can show the bills coming to your home as expenses.

Cargo and Mail Expenses

• If you send the products you sell to your customers by cargo and pay the cargo fee, you can show these expenses as expenses and deduct them from taxes.
• If you send or receive parcels and mails to or from your customers or business partners other than the products you sell and pay the fee, they can be shown as expenses if they are paid by you.

Medical Expenses

Your personal medical expenses can be deducted from taxes. For example, if you went to a private hospital and paid a check-up fee, you can show the invoice you received from the hospital as an expense and deduct it from taxes.

f you want to learn more about company expenses, you can check out our articles titled Expenses Not Accepted Legally and Monthly Expenses of Sole Proprietorship on our blog page. If you have further questions about showing expenses in a sole proprietorship, you can reach us via the live support section on our website or by phone.