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A subsidiary company asks whether expenses for a multi-year employee incentive plan (based on group share value and paid in cash) are deductible under Corporate Income Tax. The DGT concludes that such expenses are not deductible at the time of accounting entry (Art. 14.3.e LIS), but only when the remuneration becomes due to the employee (Art. 14.5 LIS); in this case, both events occur in 2022.
The tax team reviews your specific situation.
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