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A query was raised regarding which date should be used to calculate the period during which the increase in value is generated for urban land: the date of acquisition or the date of the land's removal from public domain. The DGT ruled that the date on which the transferring entity acquired ownership must be used, stating that the dates of the land's designation as public domain or its subsequent removal are irrelevant.
This ruling provides legal certainty for tax calculations involving land value increases, ensuring that the period is determined by the actual ownership history of the transferring entity rather than the status of the land as public domain.
The tax team reviews your specific situation.
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