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A company has requested clarification on whether it can apply a pending double taxation deduction from a company undergoing dissolution. The Directorate General for Taxes (DGT) has ruled that the dissolution of a company results in the extinction of its right to claim such deductions.
Companies facing dissolution cannot pass on unused tax credits or double taxation deductions to their shareholders, as the right to the deduction is tied to the legal entity itself.
The tax team reviews your specific situation.
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