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Portuguese Court Holds Deduction of Arm's Length Payment to Low-Tax Jurisdiction May Not be Denied

|Approved Changes|Portugal
Portugal

Portugal's Central Administrative Court of the Southern Region issued a decision on 11 January 2024 regarding the deductibility of payments made to low-tax jurisdictions. The case involved a large company engaged in maintenance, repair, and modification services for aircraft in several countries. As part of its operations, the company engaged an intermediary brokerage service provider to negotiate and secure contracts in an Arabic-speaking country with a low-tax regime (country not specified…

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