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A company asks about the corporate tax treatment of an expropriation, the deductibility of a provision for IVTNU, and the VAT treatment of the transaction and delay interests. The DGT clarifies when revenue arises and states that delay interests have an indemnity function and are not part of the VAT taxable base.
Companies facing expropriation must correctly assess when revenue is recognised and ensure that delay interests are not included in the VAT base, as they serve an indemnity purpose.
The tax team reviews your specific situation.
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