Expenses are deductible in the year when the services are provided. Therefore, if you pay expenses for the services for the next three years, only the amount corresponding to the services provided in the first year can be treated as deductible expenses in the first year.

There is a special rule for “Short-term prepaid expenses”.
By applying this rule, “Short-term prepaid expenses” become deductible expenses at the timing of the cash payment.

To be treated as “Short-term prepaid expenses”, the services must be provided within a year.
Example of “Short-term prepaid expenses” are rent, insurances and maintenance fees. Cost of goods sold and interest are not in the “Short-term prepaid expenses”

There is one important rule. You need to continue the same treatment in the following years. Thus, you can save tax only in the first year when you introduced this rule.