Deduction of expenses for tools, appliances or objects used in operating business

All operating expenses incurred by taxpayers operating their business to earn assessable profits are deductible. In addition to the deductions mentioned in the special provisions of the tax regulations, capital expenditures such as machinery and industrial installations or industrial and commercial buildings and structures cannot be fully deducted, but depreciation allowances can be claimed.

There is a category of items such as tools, appliances, or objects that cannot be fully deducted for the first purchase. Although they are capital in nature, they cannot be included in the category of claimable depreciation allowances. The item includes tableware, kitchen utensils, cloth products, activity tools, curtains or carpets.

However, future repair or replacement costs for such items can be fully deducted.

The general repair cost deduction is only limited to repairing the damaged part to restore the function. If it is repaired or improved or the function of the object is added, it will not be deducted.

The above information is for reference only. If in doubt, we welcome your tax inquiries