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A query was raised regarding the timing of recognition for income and expenses from a property lease paid in advance. The DGT states that, provided there is no full-time employee, such income is classified as income from real estate capital and must be recognised when it becomes due.
This clarification ensures consistency in the tax treatment of property rentals, distinguishing between business activities and real estate capital income based on the presence of full-time staff.
The tax team reviews your specific situation.
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