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A real estate developer has enquired whether the square footage sold through an exchange of land for future construction must be declared for the calculation of their IAE variable quota. The DGT has ruled that an exchange is governed by the same rules as a sale and purchase agreement and, therefore, those square metres must be included in the calculation.
Real estate developers must ensure that all square footage involved in land exchanges is accounted for when declaring their variable IAE quota to avoid non-compliance.
The tax team reviews your specific situation.
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