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A company has enquired whether it can continue to apply the free depreciation incentive to an investment made in 2010 after it was reclassified for accounting purposes as an intangible asset. The DGT has ruled that this is possible, provided that employment maintenance requirements are met and the new classification does not alter its accounting valuation.
Companies reclassifying assets must ensure that the change in accounting nature does not affect the eligibility for tax incentives, specifically regarding employment stability and valuation consistency.
The tax team reviews your specific situation.
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