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A pharmaceutical company ceased operations in 2020 but was required to pay salary differences from previous years in 2021 due to a new collective agreement. The DGT has ruled that these expenses must be declared as income from economic activities in the period in which the payment becomes due.
This ruling clarifies the timing for tax deductions related to retroactive labor costs, ensuring that expenses are matched to the period of legal obligation rather than the period the work was performed.
The tax team reviews your specific situation.
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