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A municipal company has requested clarification on whether its activities promoting employment and economic activity qualify for the 99% Corporate Tax relief. The Directorate General for Taxes (DGT) has ruled that while income derived from immediate assistance to persons at risk of social exclusion is eligible for the relief, other activities or investments are not.
This ruling clarifies the scope of tax relief for municipal entities, confirming that the benefit is strictly limited to direct social exclusion services rather than broader economic development activities.
The tax team reviews your specific situation.
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