Double accounting? A myth that could cost your company dearly.

The new resolution from the General Directorate of Taxation (Dirección General de Tributación) has raised alarms across the business sector, but the way forward is not duplication—it is technical transparency.

Differences between your business’s financial reality and the tax rules set by the Ministry of Finance (Hacienda) can be completely normal; however, it is now vital to justify them with absolute precision and documentary support. Three key points are changing the rules of the game:

• Identify the differences between financial accounting and the applicable tax treatment.
• Properly document accounting policies, reconciliations, and the criteria used.
• Support the deductibility of expenses with sufficient and timely evidence.

Do not leave the deductibility of your expenses to chance, and do not wait until the deadline. The time to review your accounting policies and strengthen your supporting documentation is now.