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A self-employed individual enquired whether legal fees incurred to judicially claim a denied cessation of activity benefit were deductible. The Directorate General for Taxes (DGT) ruled that such a benefit constitutes income from employment and, therefore, legal defence costs are deductible subject to the statutory limit.
This ruling clarifies that legal expenses related to claiming social security benefits classified as employment income are tax-deductible for self-employed individuals.
The tax team reviews your specific situation.
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