Every entrepreneur who accounts with the tax authorities on a general or flat-rate basis has the right to reduce the tax base by the so-called tax deductible costs. Many companies are looking for them wherever they can, not always in accordance with the regulations, and are therefore at risk of problems in the event of tax audits. Can bank charges be included in these costs? You can find out from our guide.
What bank charges do the entrepreneur incur?
The basis for this is the fee for maintaining a corporate bank account. In our country it is becoming more and more difficult to find an offer for 0 USD – banks without funds from deposits (low interest rates) look for money in the pockets of their customers, and the best address are entrepreneurs. Fees vary from a few to even several dozen of US$ per month.
Another cost for the entrepreneur is the transfer fee. Usually banks guarantee only free orders to the Social Insurance Institution (ZUS) and the Tax Office. Transfers to contractors’ accounts very often have to be paid for already. How many? The rates vary from several groszy to even 2 ushd for a single transfer.
Entrepreneurs can be exposed to the cost of using a payment card. As a rule, it can be avoided after several non-cash transactions in a month or after exceeding the limit indicated by the bank. However, if you forget about it, the bank will charge you a fee for the card – it may even amount to a dozen or so dollars per month.
Fees for various operations ordered by telephone or via the electronic banking system are also a standard. You have to pay e.g. for a transfer order or for an express transfer, which is booked on the same day, also at the weekend.
Can these charges be tax deductible?
Yes, of course. No official will call into question the fact that bank charges are included in costs if they are actually incurred as a result of holding an account for companies. This is one of the reasons why you should separate your personal and corporate finances and not use your private account for business purposes.
Bank charges are entered in the Income and Expenditure Register, bearing in mind that the tax inspection may ask for the expense to be documented. For example, it is useful to have account history print-outs that confirm that your bank has downloaded the fee.
Despite the fact that bank fees are tax deductible, it is worth looking for an account whose maintenance will be either free of charge or burdened with low expenses. Fidelity to the bank hardly ever pays off. Institutions are in fierce competition with each other, especially for entrepreneurs, so it is good to get to know the alternatives.