One
of the
most frequent questions
that
freelancers
and
business
owners
ask is
for how
long they must keep documents such as invoices,
when do
we have to
discard
them?
As you
know the tax authorities, as
a
general
term,
has
4 years
to
review
the
taxes
so is that period of time enough to discard the documents?
Below
we will
explain
how it
is not
as
simple
computation
time in
the
preservation
of archives.
As
a general
rule,
the
retention
period
should
be six
years.
This
should be the
term
in
relation to
books,
correspondence,
documents
and
evidence,
and
counted
from
the last entry
made
in
the books.
But
it
should
be
clarified that
there
are certain exceptions
and
the
tax
legislation
requires
us to
retain
certain
documents
for
periods of time that
may be
even
longer
than
the six
years
in question.
The
exceptions
to the general rule are:
1.
Tax review interruption.
We must
be
attentive
to
interruptions
because
the
period of time of 4
years
that has the tax authorities to
review
the
taxes
can be
interrupted
either
by an
act of
the
company itself
or by
acts of
the
Administration.
If the
period
is
interrupted,
the computation of
the four
years
starts
again
causing
the obligation of keeping the documents longer.
2. Compensation of losses with profits of future tax periods. If your company obtained negative results in some exercise and the losses were offset in subsequent years (allowing a period of up to fifteen years to do it), you must retain documentation of this compensation losses until you can review the last year in which the losses were compensated. This rule also applies to deductions made in subsequent years that are generated. 3. Assets depreciation You should keep all receipts and supporting documents for the acquisition of capital assets during the period they are amortized and not until they can be inspected and any of the years in which they have been applied. it should be noted that it is advisable to file separated the invoices of capital assets acquisition and the invoices of current goods and services and the latter can be eliminated where appropriate.
2. Compensation of losses with profits of future tax periods. If your company obtained negative results in some exercise and the losses were offset in subsequent years (allowing a period of up to fifteen years to do it), you must retain documentation of this compensation losses until you can review the last year in which the losses were compensated. This rule also applies to deductions made in subsequent years that are generated. 3. Assets depreciation You should keep all receipts and supporting documents for the acquisition of capital assets during the period they are amortized and not until they can be inspected and any of the years in which they have been applied. it should be noted that it is advisable to file separated the invoices of capital assets acquisition and the invoices of current goods and services and the latter can be eliminated where appropriate.
We
know that you could be sick of having entire rooms of filed documents
without knowing what to do with them, but proceed with caution when
it comes to getting rid of your business documents.
For
further details do not hesitate in contact VP Advisers.
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