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A query was raised regarding whether the awarding of a property to a co-owner, with financial compensation paid to the others, is subject to Transfer Tax (ITP) or Stamp Duty (AJD). The DGT ruled that if the asset is indivisible or its division diminishes its value, the transaction is subject to Stamp Duty.
This ruling clarifies the tax treatment for the division of co-owned assets, specifically determining when a transaction qualifies for Stamp Duty rather than Transfer Tax based on the nature of the asset.
The tax team reviews your specific situation.
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