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A query was raised regarding whether a company can make monthly payments to a shareholder as returns on movable capital and whether such payments are deductible. The DGT ruled that while these constitute returns on movable capital if they meet Personal Income Tax requirements, they are not deductible expenses for the company.
Companies cannot reduce their taxable base by deducting payments made to shareholders that represent a distribution of equity or returns on capital.
The tax team reviews your specific situation.
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