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A real estate company inquired whether it could apply monetary depreciation and the deduction for reinvestment of extraordinary profits following the exchange of development rights for others. The Directorate General for Taxes (DGT) ruled that this is not possible because the assets transferred are rights rather than fixed assets (property).
The ruling clarifies that the exchange of development rights is not treated as a transaction involving fixed assets, thereby preventing the application of tax benefits related to monetary depreciation or profit reinvestment.
The tax team reviews your specific situation.
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