Impact of Non-Deductible Expenses on Income Tax on Companies in the South of Lima

Objective: The objective of this study is to determine whether Non-Deductible Expenses (NDE) directly affect the determination of Income Tax (IT). Theoretical Framework: To support our variables, the concepts and theories are presented for an adequate understanding of the research, as well as the legal framework of IT. Method: This work presents a non-experimental causal correlational level without manipulating the variables, the chi-square test was applied to establish if there is independence between them. Results and Discussion: The results obtained show that there is an influence of the NDE on the calculation of the IR in the companies in the south of Lima. The results obtained were contrasted with those of other authors and with the respective theoretical and legal framework, highlighting their practical implications on an exhaustive evaluation of the expenses to determine their deductibility in the determination of income tax, in order not to have to be observed by the tax administration. Implications of the research: This work can be used in the tax area of companies. although there are some gaps in terms of reconciliation between accounting standards and tax regulations. Originality/Value: This work allows obtaining evidence on the constant evaluation of the expenses in the light of the tax regulations, being of great value the fact that micro and small companies can exercise a greater control over their expenses and avoid tax contingencies, exercising also a greater knowledge of the tax regulations applicable to their companies.