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A company has requested clarification on whether the remuneration paid to its sole director for management and senior executive functions is deductible for Corporate Tax purposes. The Directorate-General for Taxes (DGT) has ruled that such payments are deductible, provided they meet the requirements for accounting registration, accrual, and substantiation, and that the total remuneration does not exceed the amount established by the General Meeting.
The tax team reviews your specific situation.
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