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A taxpayer has enquired whether their shares in a real estate leasing company are exempt from Wealth Tax. The DGT clarifies that for leasing to be classified as an economic activity, there must be at least one employee under a full-time employment contract, and management functions cannot be performed by the same person responsible for the labour management.
This ruling sets a strict requirement for real estate companies seeking to qualify as economic activities for tax purposes, necessitating formal employment structures to benefit from Wealth Tax exemptions.
The tax team reviews your specific situation.
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