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A query was raised regarding whether it is possible to opt for the state regulation of Inheritance and Gift Tax when regional regulations improve certain aspects but are unfavourable in others. The Directorate General for Taxes (DGT) ruled that state reductions constitute a minimum threshold; therefore, if regional rules do not offer better terms than the state rules for a specific case, the state regulations must be applied.
This ruling clarifies that taxpayers can rely on state-level tax reductions as a safety net when regional tax laws impose a higher burden on specific family members.
The tax team reviews your specific situation.
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