The 2025 Budget Law has introduced several measures to improve expense traceability and combat tax evasion.
For income tax purposes, deductions are now limited to payments made through traceable methods for expenses related to meals and accommodation, whether incurred directly or reimbursed on an itemised basis to employees, as well as travel and transport expenses for journeys made using on demand public transport services.
For the purpose of determining self-employment income, expenses for meals, accommodation, travel and transport – incurred by using taxis or chauffeur-driven car hire services – must be paid via bank transfer when they are itemised and charged to clients.
The same limitation has been introduced for the same type of expenses incurred during employee business trips.
The traceability requirement also extends to client entertainment expenses, regardless of the specific deduction limits in place.
These measures are designed to reduce tax evasion and foster greater transparency in transactions.
