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A company enquired whether the profit from the sale of premises should be recognised upon the execution of the deed or when the payment is completed. The DGT ruled that, if a retention of title clause exists and possession is not transferred, the income accrues when the full price is paid.
This ruling clarifies the timing of tax recognition for sales involving retention of title, ensuring income is only recorded once the full consideration is received and the sale is effectively completed.
The tax team reviews your specific situation.
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