# Tax Tokens

Incorporating tax tokens necessitates a sophisticated approach due to their inherit incompatibility with Debita. This is where NFRs come into play.

To ensure functionality, our NFR smart contracts should be exempted from taxes, allowing users to deposit their tokens without penalty and still be able to use them as collateral.

**Transfer Restrictions of Receipt Tokens**

To prevent tax-free token transfers between wallets, tax token NFRs transfers are restricted to Debita contracts only. This ensures compliance and maintains the integrity.


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