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A query was raised regarding whether income from a 50% remission of penalties, previously recorded as an expense, must be included in the tax base. The DGT ruled that since the penalties were non-deductible, their reversal is not subject to tax.
This ruling clarifies that the reversal of non-deductible expenses does not constitute taxable income, providing legal certainty for companies undergoing debt restructuring or penalty remissions.
The tax team reviews your specific situation.
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