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A taxpayer wishes to dissolve a co-ownership of a property by being allocated the asset and compensating their uncles in cash. The Directorate General for Taxes (DGT) rules that, as it involves an indivisible asset with monetary compensation, the transaction is not an onerous transfer but is subject to Stamp Duty (AJD).
This ruling clarifies the tax treatment of property division where one party receives the asset and pays the others, distinguishing between transfer tax and stamp duty.
The tax team reviews your specific situation.
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