--- title: Business expenses date: 2022-09-24T07:51:14Z modified: 2024-05-21T09:41:03Z permalink: "https://grow.ee/ettevotluskulud/" type: post status: publish excerpt: Business expenses are one of the largest expenses for every company, but questions still arise about their taxation. wpid: 7581 featured_image: "https://grow.ee/wp-content/uploads/2022/09/ettevotluskulud-raamatupidamine-scaled.jpg" featured_image_alt: Ettevotluskulud- raamatupidamine timestamp: 2024-05-21T09:41:03Z tags: - Taxes - Accounting --- ![Ettevotluskulud- raamatupidamine](https://grow.ee/wp-content/uploads/2022/09/ettevotluskulud-raamatupidamine-scaled.jpg) Business expenses are one of the largest expenses for every company, but questions often arise about their taxation. Although the taxation of business expenses depends significantly on their purpose, there are also partial or complete tax exemptions. ## Main business expenses All expenses incurred to earn income for the company can be called business expenses. It is important to know here that the costs must be justified, documented and directly related to the entrepreneur's own business. In addition, for the cost to be considered a business expense, it must be incurred by the taxpayer in the same tax period for which the expense is deducted from the business income. ### Business expenses include, for example: - marketing expenses, advertising; - rent of premises, administration and maintenance expenses; - office expenses, including telephones, internet, etc.; - software, programs, licenses necessary for work; - wages and salary-related payments; - business trip-related expenses; - materials and related expenses related to production or service provision; - purchase and rental of equipment, machines, vehicles, computers necessary for work. ## Tax-exempt and taxable business expenses Taxation depends on the company's field of activity. There are also expenses that are either partially or under certain conditions tax-exempt or are always taxable. Under certain conditions or in part, expenses related to employee health, expenses incurred for clients and partners, expenses related to passenger cars and expenses related to employee transportation are exempt from tax. If the expense is partially related to business, the corresponding proportion of the total amount is exempt from tax. Tax-free expenses, on the other hand, are mostly ordinary and reasonable expenses necessary for business. Tax-free expenses include, for example, office rent, cleaning services, security equipment, office furniture, drinking water in the office, electronics necessary for work, newspapers and accounting services. Since these are essential expenses for the functioning of the company, they are not subject to taxation. Taxable expenses, however, are expenses incurred for the well-being of employees, which include, for example, food, drinks and entertainment. These are expenses that are more aimed at the benefit of the work culture or environment, but are not directly related to work. However, expenses incurred for the benefit of employees are often categorized as fringe benefits, which include, for example, paying for one's own employee at business lunches and benefits given to the employee's relatives. Therefore, the tax rate also depends on the categorization of the expense. ## Keep business expenses under control with the help of Grow Finance Since business expenses and related taxes are, on the one hand, fixed and certain, but still quite confusing, Grow Finance offers its clients [tax consultations](https://grow.ee/services/maksukonsultatsioon/) to help them understand new laws, tax changes and various concerns that may arise in relation to taxes. Business expenses do not have to be complicated, all you need is a reliable partner. We provide both shorter tax consultations, where you can ask questions and clarify questions of interest, as well as longer training courses, which are mostly organized for university master's students and managers operating in the private sector. We provide longer training courses for up to 25 people either at the Grow Finance office or at the location of the training client. [Request a quote](https://grow.ee/wp-content/uploads/wp-mfa-exports/page/front-page-3-2.md) Grow for tax consultation via the website and get your business expenses sorted out! 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