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An ice cream company has enquired whether it can apply the technological innovation tax deduction when developing a new vegan product. The Directorate General for Taxes (DGT) has ruled that to qualify for the deduction, the process must represent a technological advancement rather than a routine effort involving mere improvement or aesthetic modification.
Companies must ensure that R&D activities go beyond incremental improvements to qualify for tax incentives, as routine product modifications do not meet the legal threshold for technological innovation.
The tax team reviews your specific situation.
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