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A foundation enquired whether donating a right to collect fees for legal services provided by a law firm would allow for tax deductions for donations. The Directorate General for Taxes (DGT) ruled that the provision of services does not constitute a donation of rights eligible for such a deduction.
This ruling clarifies that professional services cannot be treated as charitable donations for tax purposes, preventing firms from claiming patronage tax relief on service-based contributions.
The tax team reviews your specific situation.
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