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A farmer has enquired whether a tax reduction can be applied when acquiring a farm that would cause their holding to be classified as a priority farm. The Directorate General for Taxes (DGT) has ruled that this is possible, provided that regional certification confirms the requirements for a priority farm are met at the time the tax accrues.
This ruling provides legal certainty for farmers seeking to expand their holdings, confirming that the status of a priority farm can be established at the time of acquisition to qualify for significant tax relief.
The tax team reviews your specific situation.
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