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A real estate company asks whether car rental expenses are fully deductible in income tax and VAT. The DGT responds that rental expenses are deductible in income tax if registration, liability, and justification requirements are met, while VAT deduction for cars is presumed at 50% unless proven otherwise.
Businesses may deduct car rental costs under income tax if conditions are met, with VAT on cars presumed at 50% unless evidence shows otherwise.
The tax team reviews your specific situation.
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