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A query was raised regarding whether tax relief for compensatory pensions can be applied to amounts paid following the signing of a regulatory agreement. The Directorate General of Taxes (DGT) ruled that such relief is only applicable once the divorce decree has become final.
Taxpayers cannot claim deductions for compensatory pensions based solely on a signed regulatory agreement; the divorce decree must be legally final to qualify for the reduction.
The tax team reviews your specific situation.
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