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A company enquired whether the profit reinvestment deduction under Article 37 of the Corporate Income Tax Act could be applied to the purchase of land intended for the construction of an industrial warehouse. The Directorate General for Taxes (DGT) ruled that investment in land can indeed qualify for the deduction, provided all legal requirements are met.
Companies planning to acquire land for business purposes may be eligible for tax relief through the profit reinvestment deduction, subject to strict compliance with statutory conditions.
The tax team reviews your specific situation.
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