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A taxpayer inquired whether expenses incurred for a lawyer hired to facilitate the sale of shares in an unlisted company could reduce capital gains. The Directorate General of Taxes (DGT) ruled that such fees are deductible from the transfer value, provided the legal services are directly related to the sale transaction.
This ruling clarifies that legal costs associated with the sale of shares can be used to reduce the taxable capital gain, provided they are directly linked to the transaction.
The tax team reviews your specific situation.
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