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A taxpayer queried the tax treatment of creating a sub-mortgage right to secure the payment of professional fees. The DGT ruled that the transaction is subject to ITPAJD if it is not subject to VAT, and must be valued based on the amount of the secured obligation.
This ruling clarifies the tax liability for securing professional fees through sub-mortgages, ensuring that if VAT does not apply, the transaction falls under the scope of Transfer Tax (ITPAJD) based on the secured amount.
The tax team reviews your specific situation.
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