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A query was raised regarding whether nursery costs covered by an employer through vouchers (exempt benefits in kind) are compatible with the increased maternity tax deduction. The Directorate General for Tax (DGT) ruled that, as these constitute exempt benefits in kind, they cannot be included in the calculation for the deduction.
This ruling clarifies that employees receiving tax-exempt childcare benefits cannot simultaneously claim the increased maternity tax deduction on those same expenses, preventing double tax advantages.
The tax team reviews your specific situation.
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