G. Tax-reducing expenses

Which expenses reduce taxable income? Only certain expenses reduce taxable income. These expenses include those that are directly connected to the revenue. They are to be deducted as operating expenses under the categories of business income (agriculture and forestry, self-employment, or commercial income), or as income-related expenses for the other types of income. Expenses directly related to tax-exempt income may not be deducted.

Other expenses that reduce taxable income but are not related to income generation are special expenses (see page 75) and extraordinary burdens (see page 106).