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A taxpayer queried whether donating shares in a real estate leasing company allows for a tax reduction. The DGT ruled that this is not possible because the company does not carry out an economic activity as defined by Income Tax requirements.
The ruling limits the scope of tax relief for family businesses, clarifying that mere property leasing through a company does not qualify as an economic activity for the purpose of applying the 95% reduction on share transfers.
The tax team reviews your specific situation.
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