What is a Sole Proprietorship?

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What is the use of showing expenses in sole proprietorships?

One of the most frequently asked questions by people who want to establish a sole proprietorship and conduct commercial activities is what is the use of showing expenses in sole proprietorships.


Showing expenses in sole proprietorships helps people benefit from certain advantages. Now let's take a detailed look at these advantages together.


People who show expenses in sole proprietorships pay less VAT difference.
Showing expenses in sole proprietorships in corporate tax calculations helps individuals face less tax.
The income tax rate to be paid by individuals showing expenses in sole proprietorships is considerably reduced.

These are the main advantages that showing expenses in sole proprietorships will provide to individuals and businesses. In short, the expenses shown allow for tax deduction in sole proprietorships.


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What is the use of showing expenses in sole proprietorships?



What can be shown as expenses in sole proprietorships?

Another question that people who will establish a sole proprietorship company are most often looking for an answer to is "What can be shown as expenses in sole proprietorship companies?" Because there are certain products that people who establish a sole proprietorship company cannot show as expenses.


Food expenses belonging to the business. Generally, food vouchers, food belize whatsapp data invoices or food card expenses can be used to show expenses in sole proprietorships.
Another area where people who want to show expenses in sole proprietorships can show expenses is vehicle expenses. Businesses can show 70% of expenses such as car insurance, parking, gasoline as expenses in sole proprietorships.
Receipts and invoices issued on behalf of the business can be shown as expenses. However, at this point, you should know that alcohol and cigarette receipts are not accepted.
Payments such as salaries for personnel, medicine and treatment costs, and insurance are also among the things you can show as expenses in sole proprietorships.
You can show your business's water, internet, natural gas, electricity and telephone bills as expenses.
It is also possible to show your advertising expenses, rent and membership fees as expenses in a sole proprietorship.
Consultancy services received from different companies can also be shown as expenses in sole proprietorships.
In sole proprietorships, it is also possible to show items such as computers, telephones and furniture purchased as expenses.