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An electrical installations professional inquired whether they could deduct Social Security contributions from previous years following a Labour Inspection ruling. The Directorate-General for Taxes (DGT) ruled that these are deductible provided they meet the requirements of correlation with income and are allocated to the tax year in which they become due.
This ruling clarifies the temporal allocation of deductible expenses for self-employed professionals, ensuring that Social Security costs must be matched to the specific tax period in which the obligation arises to maintain the principle of correlation with income.
The tax team reviews your specific situation.
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