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A foundation has requested clarification on whether capital gains from the sale of real estate belonging to its endowment must comply with the requirement to reinvest 70% of income into social purposes. The Directorate General for Taxes (DGT) has ruled that, as these are endowment assets, the resulting income is not included in this calculation.
This ruling provides legal certainty for non-profit entities, confirming that the disposal of endowment assets does not trigger the mandatory 70% reinvestment obligation for social purposes.
The tax team reviews your specific situation.
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