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A query was raised regarding whether the formation of a Compensation Board for an urban development sector is subject to ITP and AJD. The DGT indicates that the formation does not constitute a transfer of assets or a corporate operation, unless the Board carries out profit-making activities, in which case the corresponding exemption would apply.
This ruling provides legal certainty for urban developers, confirming that the initial establishment of a Compensation Board does not trigger transfer tax or stamp duty, provided it remains non-profit.
The tax team reviews your specific situation.
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