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A community of common lands has requested clarification on whether expenses related to patron saint festivals, social clubs, or cemeteries can reduce its tax base. The Directorate General for Taxes (DGT) indicates that while these expenses are not deductible as current expenses, they could qualify for the special reduction if they are considered public services of social interest that benefit the community.
This ruling clarifies the distinction between non-deductible current expenses and expenses that qualify for special tax base reductions under the social interest criteria for common land communities.
The tax team reviews your specific situation.
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