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A non-profit association requested clarification regarding the deductibility of late-payment interest and certain indemnities. The Directorate General for Taxes (DGT) ruled that these items constitute deductible financial expenses, subject to the limits set out in Article 16 of the Corporate Tax Act.
This ruling confirms that late-payment interest and compensatory damages can be treated as deductible financial expenses, provided they comply with the statutory limits on financial expense deductibility.
The tax team reviews your specific situation.
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