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Taxes

Legal reserve

In certain jurisdictions, corporations are mandated to establish a legal reserve to cover any potential business expenses. This requirement falls under civil law regulations. However, it is important to note that tax laws do not permit companies to claim tax deductions for these reserves. This means that corporations must carefully consider their legal reserve allocations to ensure compliance with both civil and tax laws.

Related terms

Bearer securities

Understand the meaning and definition of Bearer securities in the context of stock market, trading, and investments.

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Abatement

Understand the meaning and definition of Abatement in the context of stock market, trading, and investments.

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Temporary importation

Understand the meaning and definition of Temporary importation in the context of stock market, trading, and investments.

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Unitary tax system

Understand the meaning and definition of Unitary tax system in the context of stock market, trading, and investments.

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Tax expenditure

Understand the meaning and definition of Tax expenditure in the context of stock market, trading, and investments.

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Goods and sales tax vat

Understand the meaning and definition of Goods and sales tax vat in the context of stock market, trading, and investments.

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