Losses and deficits can occur in any accounting entity. If they do, they can lead to certain tax pitfalls. Find out what the difference is between losses, deficits and deficits, how to account for them and what their impact is on income tax and VAT.
Damages and deficiencies in accounting
In accounting, a shortage is an inventory difference when we find during an inventory that the actual state of assets is lower than it should be according to the records . Typically, there is a shortage of goods in the store or materials in the warehouse. If we lack cash in the cash register, it is a deficit.
Each accounting unit should have an internal regulation women database regulating the inventory procedure and also the solution of inventory differences. In addition to a deficit, these can also be surpluses – this is the case when the physical state of assets is higher than the registered state. The natural inventory loss standard represents technological and technical losses arising, for example, from spraying or drying out as part of technological losses in the production, supply and sales process.
In accounting, damage means physical depreciation , i.e. irreparable damage or destruction of long-term intangible and tangible assets and inventories , due to objective and subjective causes (Section 28 of Decree No. 500/2002 Coll.).
Damages and shortfalls from an income tax perspective
From the perspective of income tax, damage is understood as focus on content marketing physical depreciation (damage or destruction) of property owned .
Deficits above the natural loss rate are tax deductible only up to the amount of compensation charged to income (Section 25(1)(n) of the Income Tax Act). The transfer of a claim constitutes taxable income . Deficits above the amount of compensation are not tax thailand data deductible if, for example, the tax entity does not want or cannot request compensation for the deficiency from the employee.
Individuals keeping tax records must reduce tax expenses by the value of the inventory deficit, or increase the personal income tax base on line 105 of the personal income tax return.