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A company has enquired whether, if the financial goodwill deduction is not applied in a given year, it may be applied in subsequent years until the total amount is exhausted. The Directorate General for Taxes (DGT) has ruled that this is possible, as the one-twentieth limit is a maximum rather than a minimum.
Companies can manage the timing of their financial goodwill deductions to optimise tax planning, provided they do not exceed the annual cap.
The tax team reviews your specific situation.
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