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A work association cooperative queries whether it retains its tax-protected status when transactions with third parties exceed 50%. The DGT states that exceeding this threshold with non-members results in the loss of such status.
Whether the consulting cooperative holds the status of being tax-protected.
No cooperative may conduct a volume of transactions with non-member third parties exceeding 50 percent of its total operations without losing its status as a tax-protected cooperative. If this cause of loss, provided for in Article 13 of Law 20/1990, is incurred, the entity shall not enjoy the tax benefits of Title IV and shall be taxed at the general rate of Corporate Income Tax on the entirety of its results.
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