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A taxpayer has requested clarification regarding the timing for recognising a grant received for the purchase of agricultural machinery. The DGT ruled that, as it is a capital grant, its recognition must comply with Corporate Tax regulations and the General Accounting Plan.
This ruling clarifies the accounting and tax treatment for capital grants, ensuring consistency between corporate tax obligations and accounting standards regarding the recognition of income through asset depreciation or sale.
The tax team reviews your specific situation.
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