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A company managing collections via a mobile app has enquired whether the discounts it offers to encourage app usage are deductible for Corporate Tax purposes and how they should be documented. The DGT has ruled that they are deductible provided that the conditions of accounting entry, accrual, correlation with income, and documentary substantiation are satisfied.
Companies offering promotional discounts via digital platforms must ensure strict adherence to accounting principles and maintain robust documentation to guarantee tax deductibility.
The tax team reviews your specific situation.
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