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A query was raised regarding whether childcare costs paid by an employer as tax-exempt benefits in kind can be included when calculating the increase for the maternity tax deduction. The Directorate General for Taxes (DGT) ruled that only childcare expenses that are not classified as tax-exempt benefits in kind can be taken into account.
This ruling clarifies that employees cannot use tax-exempt employer-paid childcare benefits to increase their maternity tax deduction, as these amounts are not considered taxable income.
The tax team reviews your specific situation.
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