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A query was raised regarding when capital gains from the sale of a property involving instalment payments via earnest money deposits must be declared. The Directorate General for Taxes (DGT) ruled that the gain is recognised in the period in which the change in assets occurs, which coincides with the delivery of the goods.
This ruling clarifies the tax timing for real estate transactions involving staggered payments, ensuring taxpayers align their declarations with the actual transfer of ownership/possession.
The tax team reviews your specific situation.
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