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A company has requested clarification on when it can deduct compensations for purchasing products from farmers under the special regime. The Directorate General for Taxes (DGT) has ruled that the deduction may only be claimed once the compensations have been paid, and in proportion to the payments made if a deferred payment arrangement exists.
Companies purchasing from farmers under the special agricultural regime cannot claim tax deductions upfront; they must wait until the actual payment has been made.
The tax team reviews your specific situation.
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