Income tax and corporate income tax and receivables write-downs
Entities are not willing to make allowance for receivables because it has a negative impact on the financial result. In addition, there is always a question if it can be considered as tax deductible item. To do this, you should be able to substantiate irrecoverable debts for tax purposes.
Deductible is a provision for impairment of receivables only in its net value (net of VAT).
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