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Siblings have requested clarification on the taxation of the grouping, segregation, and dissolution of rural estates held in co-ownership. The Directorate General for Taxes (DGT) ruled that if the allocation is proportional to the ownership shares, no onerous transfer occurs, but Stamp Duty (AJD) is still applicable.
This ruling clarifies that while proportional distribution of assets in a community of property dissolution may avoid capital gains tax, it remains subject to Stamp Duty on documented legal acts.
The tax team reviews your specific situation.
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