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A taxpayer queried the taxation implications of terminating a contract for the exchange of plots for future construction that will not be carried out. The DGT ruled that, as the termination is by mutual agreement rather than by judicial decree or the fulfillment of a condition, it constitutes a new taxable event.
This ruling clarifies that mutual terminations of contracts can trigger new tax liabilities, specifically regarding transfer tax and documented legal acts, as they are treated as distinct legal transactions rather than mere cessations of previous obligations.
The tax team reviews your specific situation.
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