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A query was made regarding the tax treatment of compensation received from the compulsory purchase of a rural property used for agricultural activities. The Directorate General for Taxes (DGT) ruled that this must be treated as a capital gain or loss rather than income from an economic activity.
This ruling clarifies that compensation for expropriation is subject to capital gains tax rules instead of being classified as business income, affecting how the tax is calculated and reported.
The tax team reviews your specific situation.
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