PwC

Tax & Legal

    Tax & Legal

    No extended trade tax deduction on the disposal of an interest in a real estate partnership


    Profits arising from the sale of an interest in a partnership are not to be included in the extended trade tax deduction for real estate enterprises.

    According to Section 9 no. 1 2nd Sentence of the Trade Tax Act (TTA), in place of the deduction under Section 9 No. 1 1st Sentence TTA (lump sum deduction of 1.2% of the assessed value of the real estate), enterprises, which exclusively manage and use their own real estate, may make an application to make an (extended) deduction relating to the part of the trading income which relates to the management and use of their own real estate.