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A query was raised regarding whether the 95% reduction in Inheritance and Gift Tax can be applied if the donor, after gifting their pharmacy, is hired as an assistant or auxiliary pharmacist. The DGT ruled that the donor must cease exercising management functions and receiving remuneration for them from the date of the transfer.
This ruling clarifies the strict requirements for the business transfer tax reduction, emphasizing that the donor cannot maintain any management role or related compensation following the gift.
The tax team reviews your specific situation.
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