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A newly formed company specialising in real estate trading has enquired whether it can apply the 15% reduced Corporate Tax rate. The Directorate General for Taxes (DGT) has ruled that this is possible, provided the entity carries out an economic activity and does not qualify as a holding company.
This ruling clarifies the distinction between companies performing active economic operations and passive holding companies, allowing new businesses in sectors like real estate development to benefit from lower tax rates if they meet the criteria for economic activity.
The tax team reviews your specific situation.
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