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Taxes

Investment deduction

Investment allowance is a tax incentive provided by the government to encourage businesses to invest in capital assets. It allows for a deduction on the taxable income of a business for a certain percentage of the cost of acquiring new assets. This deduction can help reduce the tax burden for businesses, freeing up more funds for further investments. It is important for businesses to consider the eligibility requirements and limitations of investment allowance before making any major investment decisions. By taking advantage of this incentive, businesses can not only save on taxes but also stimulate economic growth and development.
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