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An advertising management company has enquired whether it must withhold tax when paying money to clients as reimbursement for expenses incurred during campaigns. The DGT has ruled that if the payment is made strictly within the private sphere of consumers, no withholding is required.
Companies managing advertising campaigns and reimbursements must distinguish between professional services and private consumer reimbursements to avoid incorrect tax withholdings.
The tax team reviews your specific situation.
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