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A professional inquired whether the costs of maintaining and updating their computer software were deductible within their economic activity. The Directorate General for Taxes (DGT) ruled that they are deductible provided they are accounted for as an expense rather than as an increase in the value of fixed assets.
This ruling clarifies the distinction between operational expenses and capital expenditure for software, providing certainty for professionals regarding the tax treatment of software upkeep.
The tax team reviews your specific situation.
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