According to Article 257 of the Tax Code, a taxpayer is entitled to deduct actually incurred expenses related to activities aimed at generating income, provided that supporting documents are available.
In particular, expenses for employees’ business trips (transportation, accommodation, per diem allowances, and other payments provided for by law) may be deducted for Corporate Income Tax (CIT) purposes if the business trip is directly related to the company’s activities and aimed at generating income.
At the same time, it is important to consider that:
-expenses must be economically justified;
-supporting documents are required;
-the connection between the expenses and the taxpayer’s own activities must be confirmed.
However, expenses incurred solely in the interests of another independent legal entity are not considered the taxpayer’s expenses and are not deductible.
Documentary evidence may include primary accounting documents as well as other materials confirming the economic justification of the expenses and their purpose of generating income.