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A query was raised regarding the classification of income from a community of property where some members work and others do not. The DGT ruled that if the entity carries out an economic activity, the income is attributed to the members as income from economic activities.
This ruling clarifies the tax treatment for members of a community of property, ensuring that income derived from business operations is correctly categorised as business income rather than other types of income, regardless of the individual members' involvement in the work.
The tax team reviews your specific situation.
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