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A query was raised regarding when a grant for the establishment of an agricultural holding should be declared for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that its treatment depends on its purpose and whether the cash basis or accrual basis is applied.
This ruling clarifies the timing of tax recognition for agricultural grants, distinguishing between capital and current subsidies based on accounting methods.
The tax team reviews your specific situation.
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