Читать книгу Ultimate guide on GCC Taxation - Павел Игоревич Герасимов - Страница 15

Bad debts are deductible, provided they meet all of the following conditions:

● The bad debt was previously declared in the appropriate year’s income.

● The debt resulted from sale of goods or services.

● The company holds a certificate from the taxpayer’s certified public accountant (CPA) certifying that the debt has been written off in the taxpayer’s books and records, based on a decision by the taxpayer at the appropriate management level.

● Serious efforts have been exerted by the taxpayer to collect the debt with no success and the inability of the debtor to pay has been proved based on a judicial ruling or bankruptcy.

● The debt is not from a related party.

● There is a commitment by the taxpayer to reinstate, as income, any written-off debt whenever collected.