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A company has requested clarification on whether renovation costs incurred in a rented premises can be depreciated. The DGT indicates that these costs may be recorded as tangible fixed assets if they meet the definition of an asset, and outlines the conditions for their tax deductibility.
This ruling provides clarity for companies regarding the accounting treatment and tax deductibility of improvements made to leased properties, allowing for the capitalisation and depreciation of such costs under specific conditions.
The tax team reviews your specific situation.
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