New tax guidelines on real estate companies
The tax authorities have released an informative note on the transformation of limited liability companies whose corporate purpose is the buying and selling of real estate into SIIMO (real estate investment companies) and its relation with the property tax. The issue is, in particular, if such transformation is subject to property tax and how it may affect the property tax exemption for companies that trade in real estate.
According to such information, the transformation of these companies is not subject to property tax, as long as there is no termination of the initial company (but only its transformation into a SIIMO).
On the property tax exemption for companies that buy and sell real estate, the tax authorities conclude that, provided that the transformed company maintains the same corporate purpose, this exemption shall not be affected.
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[Photo: Ricardo Resende, available at: unsplash.com]