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A company sought clarification on whether investing in an engineering project to improve its polyethylene manufacturing process qualified for the technological innovation tax deduction. The Directorate General for Taxes (DGT) ruled that purchasing machinery to enhance production does not constitute a technological innovation activity.
Companies cannot claim tax deductions for technological innovation based solely on the acquisition of equipment intended to optimise existing production processes, as this does not meet the legal threshold for innovation.
The tax team reviews your specific situation.
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