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V1011-15 ·27 March 2015 ·consulta-vinculante Medium impact
Tax

Transactions between related parties must be valued at market value for CIT, and VAT treatment in land swaps

A query was raised regarding the CIT and VAT taxation of a land swap for future housing between related parties. The DGT rules that transactions between related parties must be valued at market value and analyses the VAT treatment concerning the transfer of land and construction.

In 6 key points

How it affects those involved

This ruling clarifies the valuation requirements for transactions between related entities to prevent tax avoidance and defines the VAT implications for complex land-for-building exchange agreements.

Lifecycle

2015-03-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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