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A query was raised regarding whether the tax base for Transfer Tax (ITP) must match the price stated in the purchase deed. The Directorate General for Tax (DGT) has ruled that the tax base is the real value of the asset, which does not necessarily have to equal the price agreed upon between the parties.
This ruling clarifies that tax authorities may assess ITP based on the property's actual market value rather than the transaction price, potentially leading to higher tax liabilities if the sale price is below market value.
The tax team reviews your specific situation.
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