Ruling: Contribution in the form of undeveloped real estate for the benefit of the company’s partner

The Director of the National Tax Information has declared that the position taken on the assessment of the tax consequences of returning a contribution in the form of undeveloped real estate to a company’s partner, without VAT taxation, is incorrect.
An application for an individual interpretation was received on March 14, 2023, supplemented with a letter on May 23, 2023.
The limited partnership in question is planning to amend its articles of association to reduce the general partner’s non-cash contribution and reimburse the shareholder in-kind for their in-kind contribution made in 2007.
The return of the contribution will be free of charge and does not fall within the scope of the applicant’s business activity.