The Company (lessee) had made the agreement for providing right of using market area with the lessor for the period of 20 years from 2020 to 2040 and the Company should be responsible for the official fee of rental register, duty stamp and other expenses related to the rental register at the Department of Lands, thus we would like to consult that the above fee and expenses related with the rental register at the Department of Lands can be used as the taxable expenses for income tax calculation or not?
Panwa: In case the Company made an agreement with a lessor, the Company as a lessee is responsible for the official fee and duty stamp follow an agreement which these expenses are not subjected to the capital expenditure, so the Company can use such expenses on the income tax calculation in the accounting period that it was paid. For other expenses incurred from the rental register as agreement , if they are the expenditures arising from the business operation and it isn’t subjected to the capital expenditures, the Company can use it as the taxable expenses for income tax calculation in the accounting period that it was paid. Anyway, we could serve for taxation services and please click here.
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