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A professional association has requested a ruling on the tax treatment of transferring its assets to an association not declared to be of public utility. The Directorate General for Taxes (DGT) has ruled that the free transfer does not fulfil the professional association's specific purpose; consequently, the resulting income is subject to tax.
This ruling clarifies that asset transfers that do not align with the specific statutory purposes of a professional association will not benefit from tax exemptions, potentially leading to unexpected Corporate Tax liabilities.
The tax team reviews your specific situation.
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