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A query was raised regarding whether the allocation of a wife's separate property to a surviving spouse, as payment for her share of community property, constitutes a barter subject to tax. The DGT ruled that, as these are not community assets, the transaction is an onerous transfer subject to ITP (Transfer Tax) and AJD (Stamp Duty).
This ruling clarifies that transferring separate property to settle community property interests is treated as an onerous transfer rather than a mere division of assets, triggering tax liabilities.
The tax team reviews your specific situation.
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