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Accounting & Tax vocabulary · Income & Corporate Tax

Tax-deductible

Meaning in accounting & tax, with examples

adjectiveCommon term

In accounting & tax, tax-deductible means: Allowed by tax law to be subtracted from income when calculating taxable profit, which reduces the amount of tax to pay.

In Turkish: vergiden düşülebilir, gider olarak kabul edilen, indirilebilir

How it is used

Used about expenses, donations and losses: an expense is tax-deductible or non-deductible. Accountants check whether costs such as entertainment or fines can be deducted.

Example sentences

  1. Tax penalties and fines are not tax-deductible.

  2. Is the cost of this training course tax-deductible for the company?

Common collocations

  • tax-deductible expense
  • non-deductible
  • fully deductible
  • deductible for tax purposes
  • taxable incomeThe part of income on which tax is actually calculated, after allowed expenses, exemptions and allowances have been deducted from total income.
  • expenseA cost a business has used up in a period to earn revenue, such as salaries, rent, electricity or advertising, which reduces profit.
  • tax exemptionA rule that removes certain income, transactions or organisations from tax, either completely or up to a set limit.
  • corporate taxA tax on the taxable profits of companies, calculated on the profit for the year after allowed deductions and adjustments.

More terms: Income & Corporate Tax

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This page explains English vocabulary for learners. It is not financial advice.