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6.4. Reserves and Provisions

Provisions: Impairments and write-offs of receivables are not deductible for tax purposes until their materialization or the expiration of the five-year statute of limitation to pursue the claim at court. Provisions for payables are not deductible for tax purposes until their materialization. An option for 10-year carry-back and effective refund of tax is possible in situations where the company ceases its business activity in the year of the use of the provision.