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A self-employed individual who was also a shareholder in a company paid compensation to other shareholders following a court ruling on unfair competition. The Directorate General for Taxes (DGT) has ruled that this expense is deductible for Personal Income Tax (IRPF) purposes under the direct estimation method.
This ruling clarifies that compensation paid as a result of unfair competition can be treated as a deductible business expense for self-employed individuals using the direct estimation method, provided it relates to their economic activity.
The tax team reviews your specific situation.
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