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A member of a housing cooperative has requested clarification on how to tax compensation received following litigation over construction defects. The Directorate General for Taxes (DGT) has ruled that this amount, when distributed as a cooperative return, is classified as income from movable capital.
This ruling clarifies the tax treatment for cooperative members receiving compensation, ensuring that such distributions are taxed as investment income rather than other forms of income.
The tax team reviews your specific situation.
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