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A non-profit agricultural professional organisation has enquired about the tax treatment of a property acquisition granted by the Regional Government of Castilla-La Mancha, and whether its market value can be reduced through an official appraisal. The Directorate General for Taxes (DGT) ruled that the income must be included in the taxable base in accordance with accounting standards and that the valuation of the right received is a matter of fact.
This ruling clarifies that non-monetary subsidies must be recognised as income following accounting principles, affecting how non-profit entities account for assets received via grants.
The tax team reviews your specific situation.
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