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A professional under the direct estimation tax regime has enquired whether the purchase of Christmas lottery tickets to give as gifts to clients is deductible. The Directorate General for Taxes (DGT) has ruled that these expenses are deductible as client hospitality, provided they do not exceed 1% of the net turnover.
This ruling clarifies the tax treatment of promotional gifts for professionals, establishing a specific cap based on turnover for such deductions.
The tax team reviews your specific situation.
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