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A company enquired whether the accounting recovery of an impairment of fixed assets, which had been subject to a positive adjustment (non-deductible), should be taxed as income. The DGT ruled that, since it was not previously tax-deductible, the reversal should not be included in the tax base.
This ruling clarifies that the reversal of an impairment that was previously disallowed for tax purposes does not constitute taxable income, preventing double taxation.
The tax team reviews your specific situation.
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