Tax Categories - Non Deductibles and Non Taxables

Tax Categories - Non Deductibles and Non Taxables

AI.TaxAssist uses machine learning to cognitively suggest the non-deductibles and non-taxables in the workspace entries. This classification is marked under the Category column in the Workspace.

Non-deductibles are marked on Expense entries. If an entry is detected as a potential non-deductible, the reason for this detection is applied as the tax Category. Here is a list of non-deductible expenses that the machine will automatically classify as a non-deductible,
  1. Improvement/ new assets
  2. Construction Costs
  3. Amortization expenses
  4. Shares related expenses
  5. Private motor vehicle expenses (S-plated)
  6. Unapproved Funds/Schemes
  7. Fee on lawsuits
  8. Depreciation
  9. Private expenditure
  10. Gifts/Donation
  11. Entrance fees
  12. Capital exchange differences
  13. Capital expenditure
  14. Stock compensation expenses
  15. Fixed assets disposed off
  16. Capital items expensed off
  17. Ceremony expenses
  18. Goodwill/Intangilble
  19. Provision for stock obsolescence (general)
  20. Bad debts written off
  21. Tax expenses
  22. Statutory penalties
  23. Installation fees
  24. Repair (capital)
  25. Dividend expenditure
  26. Architect Fee
  27. Brokerage (capital)
  28. Registration/Incorporation expenses
  29. Litigation expenses
  30. Company reconstruction
  31. Termination of business
  32. Mortgage/Loan
  33. Tenancy/Lease
  34. Property Transfer
  35. Renovation expenses
  36. Lease premium
  37. Loss from theft
  38. Non-contractual loss
  39. Non-trade debts written off
  40. Restrictive convenants
  41. Voluntary contributions
  42. Pre-commencement expenses
  43. Private Car
  44. Foreseeable losses
  45. Leave Pay
  46. General provision
  47. Stamp duty re: capital
  48. Research and development
  49. Expenditure without supporting documents
  50. Life Insurance
  51. Personal Insurance
  52. Share based payment
  53. Accretion of capital
  54. Rental expense (rent free period)
  55. Interest expense (book entry)

Non-taxables are marked on Income entries. If an entry is detected as a potential non-taxable, the reason for this detection is applied as the tax Category. Here is a list of non-taxable incomes that the machine will automatically classify as a non-taxable,
  1. One-Tier Dividend
  2. Capital exchange gain
  3. Gain on disposal of fixed assets
  4. Gains on disposal of equity investments
  5. FSIE - Foreign-sourced dividend
  6. FSIE - Foreign branch profits
  7. FSIE - Foreign-sourced service income
  8. PIC Cash Payout
  9. Government grant (to defray capital expenditure)
  10. Payables written off
  11. Non-trade debts forgiven
If you find that the system has not categorised the ledger correctly, you can change the category. To make changes to the category, please follow the steps listed in the article Changing Tax Category & Adding Labels.                

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