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A query was raised regarding whether an associated labour cooperative (CTA) can invoice income from legal aid services and whether the payer is required to withhold tax. The Directorate-General for Tax (DGT) ruled that the CTA may invoice this income and that the Bar Association is not obliged to apply any withholding tax.
This ruling clarifies the tax treatment for associated labour cooperatives providing legal aid services, confirming their ability to invoice such income and exempting the paying entity from withholding obligations.
The tax team reviews your specific situation.
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