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A query was raised regarding whether the formation of a Compensation Board is subject to Documented Legal Acts (AJD) tax. The DGT ruled that, as a general rule, it is not subject to this tax because there is no transfer of assets or economic content, unless the deed specifies property values or is subject to registration in the Land Registry.
This ruling clarifies the tax liability for Compensation Boards, establishing that they are generally exempt from AJD tax unless specific economic criteria or registration requirements are met.
The tax team reviews your specific situation.
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