Income Tax Act Article 64

Evaluation of prepaid expenses shall be based on the portion of the amount remaining within the unexpired period; the inventory of supplies must be valued on the basis of the portion of the amount covering the unused supplies; evaluation of other deferred expenses must be based on the non-amortized amount.Expenditures of a profit-seeking enterprise incurred during the organizational period must be recorded as current expenses. The term "organizational period" means the period from the preparatory stage to the starting date of the business that commences to generate significant revenue.The expenses defrayed for the issue of corporate bonds and the difference resulting from the discounted issuance of corporate bonds against their face value shall, where a definite period of amortization is provided for, be amortized in installments according to such a period.