Professional expenses & deductibility
What are the conditions for an expense to be deductible?
For the tax authorities to accept the deduction of an expense from your professional income, you must meet the three main conditions set out in Article 49 of the Income Tax Code:
A link to your business: The expense must be incurred to acquire or maintain your professional income and have a real link to your business.
The correct year: The expense must be related to the relevant tax period and have actually been incurred during that period.
Proof of purchase: You must be able to prove the reality and amount of the expense by means of convincing supporting documents.
What you cannot deduct: Your purely personal expenses, income taxes (IPP, ISoc), non-deductible fines and penalties and other expenses expressly excluded by law, as well as your everyday clothing (only specific work clothes or regulation uniforms are allowed).
Computer, phone and internet: what happens if I also use them in my private life?
Whenever a purchase is used for both work and personal life (mixed use), the rule is to isolate the professional part:
Equipment (computer, smartphone, tablet): Only the portion corresponding to professional use is tax-deductible. Depending on its nature, size, and duration of use, the purchase may be directly expensed or depreciated over several fiscal years. For VAT purposes, recovery may be limited to the portion related to professional use, subject to specific applicable rules.
Telephone and Internet subscriptions: The business portion of your subscriptions is tax-deductible. However, the television (TV) portion of a bundled package is generally not tax-deductible, unless you can demonstrate sufficient business value.
Software and website: Your IT subscriptions (SaaS), software used in your business, and web hosting fees are deductible as operating expenses. If you create a custom website or develop significant software, these expenses may, depending on their nature, have to be recorded as investments and amortized over several fiscal years.
Meals, gifts, training and travel: what are the limits?
Certain expenses are subject to specific legal limitations:
Business restaurant expenses: 69% are tax-deductible (31% of expenses are non-deductible and remain your responsibility), provided you can demonstrate that the meal was taken in a business context. Remember to note the name of the client or partner you invited as a good practice for evidentiary purposes. VAT on restaurant expenses is generally not recoverable.
Business gifts and receptions: Gifts given to business contacts and reception expenses are generally 50% deductible. Small promotional items bearing your logo and widely distributed may be eligible for a 100% deduction as advertising expenses when they meet the applicable conditions for promotional items.
Training: Training costs directly related to your professional activity are generally 100% deductible, subject to the general conditions of deductibility. If the price includes meals or other services subject to limitations, these items retain their own tax treatment.
Business travel: Travel, accommodation, and trade show participation expenses are deductible if the business purpose is clearly documented. However, personal expenses (extended tourist stays, family accompaniment) are excluded. (Certain flat-rate subsistence allowances may be permitted for company directors, subject to compliance with applicable conditions and rates).
Transportation (excluding car): Your taxi journeys for professional purposes are 75% deductible. Public transportation and cycling for work are deductible up to the amount of their professional use.
Can I deduct part of my rent and energy bills if I work from home?
If you use part of your home for your SRL business activities:
Energy and water consumption
Allocation based on the office space (for example, a 15 m² office in a 150 m² home, i.e., 10%) can be a reasonable method of allocation, provided it reflects actual business use. Keep your invoices and a breakdown of your calculations.
Real estate rental
In the case of real estate rental, specific tax rules apply.
The owner will be taxed on the rental income as a personal income tax and will have to declare the amounts in their tax return.
-If you own the building : The portion of the rent and rental benefits that exceeds the tax ceiling (calculated on the basis of the revalued cadastral income) is reclassified as remuneration of a company director.
-If you are a tenant of the building , the SRL can cover the professional portion of your rent, only if these 3 conditions are met:
The lease signed with your landlord authorizes professional use.
The professional share is mentioned in the lease (or in an addendum).
The lease has been registered.
Car expenses: what are the rules?
The tax regime for motor vehicles depends on their technology, their CO2 emissions and the date of acquisition, leasing or rental:
100% electric (zero-emission) cars: For zero-emission vehicles purchased, leased or rented in 2026 , the tax deduction remains fixed at 100% . (A progressive reduction schedule will apply for subsequent acquisitions: 95% in 2027, 90% in 2028, 82.5% in 2029 and 75% in 2030).
Thermal and hybrid cars: For vehicles acquired, leased or rented from 2026 onwards, professional expenses related to vehicles that emit CO2 are in principle no longer deductible, subject to the special regimes applicable to vehicles acquired previously (which continue to benefit from transitional rules with progressively reduced deductibility).
VAT on cars: For the passenger cars and mixed vehicles concerned, VAT recovery depends on the actual business use and cannot exceed the maximum legal ceiling of 50% .
Credit interest: Interest related to the financing of your company vehicle remains deductible up to the amount of your professional use.
How to protect yourself in the event of a tax audit?
In the event of an audit, the burden of proof lies with you: you must establish the reality, the amount and the professional nature of your actual expenses.
Prioritize invoices issued in your company's name: An invoice in your company's name provides particularly strong proof of purchase. However, depending on the nature of the expense, a receipt or ticket can also serve as evidence if it sufficiently establishes the fact, amount, and business purpose of the transaction.
Retain context: Keep confirmation emails, invitations, training programs or quote exchanges that attest to the professional context of an expense.
Use your business account: Pay for all your business expenses using your business account or card to ensure clear traceability and avoid confusion with your personal assets.
