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A technology company has enquired whether travel and subsistence expenses for a European research project can be included in the R&D tax deduction. The Directorate General for Taxes (DGT) has ruled that if the grants received exceed the expenses incurred, the deduction base shall be zero.
Companies must carefully monitor the balance between research expenditure and public funding to avoid a zero deduction base for Corporation Tax purposes.
The tax team reviews your specific situation.
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