Can I Claim Private and Personal Costs as a Business Expense in Italy?
No. A cost that does not relate to the business is not a company expense.
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What Agenzia delle Entrate says
A cost needs to relate to the business activity to be a company expense. Adjustments from the accounting profit to taxable profit are made by your commercialista. Private spending does not relate to the business. If the company pays a private cost for an owner, it should not be booked as a business expense, and your commercialista should confirm how to record it.
When you can claim
- None. A private cost is not a business expense.
- A mixed-use item can be claimed only for its business share
When you cannot claim
- Personal shopping, holidays and family costs
- Private bills paid from the company account
Good to know
Pro tip: Keep private spending out of the company account. A clean split makes the books simpler and the returns safer.
Important: Private costs paid by the company can change the owner's tax position. Raise them with your commercialista before the year-end.
Related expenses
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