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A company has queried whether purchasing gold coins to give as gifts to clients or suppliers constitutes a deductible expense for Corporate Tax purposes. The Directorate General of Taxes (DGT) has ruled that such expenses may be deductible, provided they meet general requirements and are limited to 1% of the company's turnover.
Companies looking to provide high-value gifts such as gold coins must ensure these expenses do not exceed the 1% turnover threshold to maintain tax deductibility.
The tax team reviews your specific situation.
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