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A company has requested clarification on when it can deduct compensations for purchasing milk from livestock farmers under the special regime if payment is scheduled for a later date. The Directorate-General for Taxes (DGT) has ruled that the deduction is only permissible once the compensations have been fully paid.
This ruling clarifies the timing of tax deductions for companies operating under the special agricultural regime, establishing that the actual settlement of compensations is a prerequisite for the deduction.
The tax team reviews your specific situation.
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