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A real estate company has inquired whether interest from a participating loan provided by its majority shareholder—which has been recognised in the accounts as part of the value of its inventory—is tax-deductible. The Directorate General for Taxes (DGT) has ruled that, as the entities belong to the same group, these payments are considered dividends and do not constitute a tax-deductible expense.
The tax team reviews your specific situation.
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