Article 28 - Deductible Expenditure

Expenditure incurred wholly and exclusively for the purposes of the Taxable Person's Business that is not capital in nature shall be deductible in the Tax Period in which it is incurred, subject to the provisions of this Decree-Law.

For the purposes of calculating the Taxable Income for a Tax Period, no deduction is allowed for the following:

1. Expenditure not incurred for the purposes of the Taxable Person's Business.

2. Expenditure incurred in deriving Exempt Income.

3. Losses not connected with or arising out of the Taxable Person's Business.

4. Such other expenditure as may be specified in a decision issued by the Cabinet at the suggestion of the Minister.

If expenditure is incurred for more than one purpose, a deduction shall be allowed for:

1. Any identifiable part or proportion of the expenditure incurred wholly and exclusively for the purposes of deriving Taxable Income.

2. An appropriate proportion of any unidentifiable part or proportion of the expenditure incurred for the purposes of deriving Taxable Income that has been determined on a fair and reasonable basis, having regard to the relevant facts and circumstances of the Taxable Person's Business.