The general rule on business expenses is that a deduction is allowed for all expenses necessary for the production of taxable income or to maintain the productive assets.

The following expense types are not deductible or have limited deductibility for tax purposes:

• Corporate income tax is not deductible;
• Payment of any taxes and charges due by third parties which the corporate taxpayer is not required to bear are not deductible (i.e., which may be legally passed on to third parties);
• Fines, penalties, and charges of a non-contractual character imposed for any corporate taxpayer's infringements are not deductible;
• Expenses indemnified by insurance are not deductible ;
• Undocumented expenses are not deductible;
• Expenses related to documents (e.g., invoices) issued by taxpayers with a non-existent or invalid tax identification number or issued by taxpayers whose activities are declared to have ceased are not deductible;
• Expenses incurred by the taxpayer with entities that have not submitted a declaration of commencement of activity are not deductible; and
• Solidarity contributions paid by energy and food distribution companies are not deductible (see Sec. 8.1.)