12.10.05

According to Letter N 03-11-04/2/37 from Ministry of Finances, dated August 4, 2005 companies with simplified taxation can write-off expenses incurred for accounting services provided them. The Ministry stresses that it is possible only if the company providing the services has the appropriate license to do so.  Otherwise, these expenses cannot be written off.  The same write-off rule works for consulting services.

Furthermore, the list of expenses for companies using simplified taxation will be extended starting 2006, when new amendments to the article 26.2 of Tax Code will come into force. This list will include accounting and consulting services and will eliminate the rule that the company providing the outsourced accounting services must be licensed in order for their services to be written off.