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V2045-24 ·25 September 2024 ·consulta-vinculante Medium impact
Tax

Cash incentive plan expenses are deductible in the tax year the provision is applied

The taxpayer asks whether the expense of a multi-year incentive plan, recorded in 2022 in accordance with Rule 17 of the General Accounting Plan (PGC), is deductible for Corporate Income Tax purposes. The DGT rules that, although the accounting accrual must be spread over the service period, the tax deductibility of these cash payments occurs when the provision is applied or the expense is allocated to its intended purpose.

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2024-09-25PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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