Bad debt: Companies may establish tax-deductible provisions for potential bad debts. The maximum amount that may be allocated to such a provision is the lower of 50%-100% of the bad debt, depending on the size of the claim.

Effective 1 January 2020, bad debts may be written off in the following cases:

• where a receivable does not exceed EUR 300 (including VAT) per counterparty, it is deductible subject to an annual limit of 5% of a company's total claims; and
• where receivables are written-off in the context of mutual agreement or court settlement, it is deductible regardless of whether a provision has been recorded in the company books.

Employees' termination indemnity: A provision for employees' termination indemnity is deductible to the extent it applies to employees expected to retire within the following year.