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6.3.5. Goodwill

The goodwill generated as a consequence of the acquisition of shares or quotas in national or foreign companies is deductible if i) it complies with the general rules regarding deductibility of expenses; and ii) the decrease in value exists and the taxpayer can prove it with the respective technical study.

The expense generated on goodwill amortization cannot be deducted by the company whose shares or quotas have been acquired nor by the companies resulting from the merger, spin-off or winding up thereof.

The goodwill that may not be amortized will be added to the cost of the corresponding investment.