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V0721-20 ·6 April 2020 ·consulta-vinculante Medium impact
Tax

Current subsidies are recognised upon definitive award, unless the cash basis is chosen

A farmer asks when to declare Common Agricultural Policy subsidies received the year following their award. The DGT rules that, as a general rule, they must be recognised in the tax year in which the definitive award resolution is issued.

In 6 key points

How it affects those involved

This ruling clarifies the timing of tax recognition for agricultural subsidies, establishing that the accrual basis (recognition of the award) prevails over the cash basis unless specifically opted for.

Lifecycle

2020-04-06PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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