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A query was raised regarding whether the acquisition of a business goodwill right is deductible for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that the total agreed amount is not immediately deductible; instead, it must be amortised as an intangible asset.
This ruling clarifies that business goodwill cannot be treated as a direct expense but must be amortised over time, affecting the timing of tax deductions for self-employed individuals.
The tax team reviews your specific situation.
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