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A query was raised regarding whether renovation costs for a professional premises' facade should be recorded as an expense for the period or through depreciation. The DGT ruled that the treatment depends on whether the works are considered repairs and maintenance or if they constitute a renovation, extension, or improvement.
This ruling clarifies the distinction between deductible operating expenses and capitalised costs for tax purposes, affecting how property improvements are reported in accounting.
The tax team reviews your specific situation.
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