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A company has enquired whether the purchase of products for Christmas hampers intended for employees and clients is tax-deductible. The Directorate General for Tax (DGT) has ruled that these expenses are deductible provided they comply with requirements regarding accounting, accrual, correlation with income, and documentary evidence.
Companies can reduce their taxable base by including Christmas hampers as deductible expenses, provided they can prove the business purpose and maintain proper documentation.
The tax team reviews your specific situation.
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