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A company has requested clarification on whether the lease of an industrial warehouse, including its facilities, equipment, and stock, is subject to Corporate Income Tax withholding. The Directorate General for Taxes (DGT) has determined that, as it does not meet the requirements for a business lease, it constitutes a real estate lease subject to withholding.
Companies leasing industrial premises that include equipment or stock must ensure they comply with withholding tax obligations, as such arrangements may be classified as real estate leases rather than business leases.
The tax team reviews your specific situation.
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