If your company rents a part of your house to set up an office and all necessary annexes (living room, toilets, meeting room, garage, archive cellar, etc.), it is important to remember that it is the company’s responsibility to prove the professional nature of the rent expense.
Tax authorities have previously denied, during audits, a portion of the deducted rents by concluding that the actual space allocated for professional activity was much smaller than the declared percentage. Courts have also sided with the tax authorities when the professional space was limited and proof of its use was not provided.
To prevent the tax authorities from denying the deduction of rents on the grounds that professional use is not demonstrated, it is necessary to prepare a dossier containing tangible evidence of this professional use, such as written appointment schedules, invitations sent to clients, suppliers, or other third parties, meeting reports, shared materials, etc.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
