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A query was raised regarding whether income should be imputed for the entirety of an urban plot containing small buildings or only for the built area. The Directorate General for Taxes (DGT) ruled that income imputation is not applicable to the unbuilt portion of the land.
This ruling clarifies that owners of urban plots with minor structures do not need to impute income for the unbuilt parts of the land, provided the land is not used for economic activity.
The tax team reviews your specific situation.
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