Expenses incurred for the purpose of business are deductible unless they are specifically disallowed.

The following expenses are not deductible or have limited deductibility for Comoros tax purposes:

Interest on loans provided by the shareholders is deductible only up to the discount rate of the Central Bank as increased by 2 percentage points;
Effective 1 January 2021, head office expenses covering services such as studies, technical, commercial, accounting or IT assistance are deductible for their part concerning the Comoros business, but the deduction is generally capped at 5% (previously 10%) of the turnover derived in the Comoros. The deduction cap is reduced to 2% (previously 5%) for public works companies and to 7% (previously 15%) for engineering design and consulting companies. The limitation does not apply to financial assistance, nor to technical assistance in the framework of plant installation;
Commissions paid on account of acquisition of goods abroad for the benefit of resident entities are deductible only up to a maximum of 5% of the CAF value of the goods;
Amounts paid for the use or the right to use patents, trademarks, models, or formulas are deductible only if the relevant intellectual property right is still valid and the amount paid is reasonable; and
The tax on profits and fines and penalties of any fiscal nature are not deductible.

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