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A partnership engaged in the retail trade of food and stationery has enquired whether it can include parcel collection services under its current tax headings. The Directorate General for Taxes (DGT) has ruled that a separate heading must be used and, as it is not an ancillary activity, it necessitates taxation under the direct assessment method.
Businesses offering parcel collection services must ensure they are correctly registered under the appropriate tax heading and comply with direct assessment rules for Personal Income Tax, as these services are not considered ancillary to their main business activity.
The tax team reviews your specific situation.
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