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A query was raised regarding whether the deduction rate for provisions and hard-to-justify expenses under the simplified direct estimation method would be 7% in 2024. The Directorate-General for Taxes (DGT) clarified that the 7% rate applied only to the 2023 tax year.
Taxpayers using the simplified direct estimation method will face a lower deduction rate for provisions and hard-to-justify expenses in 2024 compared to 2023, potentially increasing their taxable net income.
The tax team reviews your specific situation.
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