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A shipping company inquired whether it could cease provisioning the unavailable reserve and adjust its fixed assets through a note in the financial statements. The Directorate-General for Taxes (DGT) ruled that any provision made cannot be reversed until the vessel is transferred.
This ruling limits the flexibility of shipping companies to adjust their tax base or accounting records regarding the unavailable reserve prior to the actual sale or transfer of their vessels.
The tax team reviews your specific situation.
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