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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A taxpayer inquired about the correct timing for recording a grant received to settle a debt related to their economic activity. The Directorate General for Taxes (DGT) ruled that accounting standards must be followed, meaning the grant must be recorded as income in the same financial year in which the debt is cancelled.
This ruling clarifies the tax timing for grants used to offset business liabilities, ensuring alignment between accounting practices and tax obligations.
The tax team reviews your specific situation.
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