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May 15, 2026

Article 56 clarifies the timing of deductions for taxpayers whose accounting periods do not align with the calendar year ending December 31st. Any deductible expenses or amounts (per Articles 54 and 55) incurred during the entity's specific accounting period are legally deemed to have been incurred during the tax year in which that accounting period concludes. This ensures that the expenses and the related income generated within that accounting cycle are matched and assessed together in the appropriate annual tax return, maintaining the integrity of the periodic assessment process.

Part 3 - Chargeability to Tax

Chapter 2 - Rules for Deduction from the Gross Income

Section 1 - General Provisions

Article 56

[GTL Notes: Timing of Expense Deduction]

Where the accounting period of a taxpayer ends on a date other than thirty first of December, then any of the expenses or amounts mentioned in the foregoing Articles 54 and 55 which were actually incurred during such accounting period shall be deemed to be expenses and amounts incurred during the tax year in which the accounting period ends.