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V1216-19 ·30 May 2019 ·consulta-vinculante Medium impact
Tax

Grants for starting businesses in rural areas are treated as income from economic activities

A taxpayer asks how to account for a grant received to set up a music school. The DGT determines that, as it is not specifically intended for fixed assets, it is an operating grant and must be recognised in the tax year the final resolution is issued.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of non-capital grants, ensuring they are recorded as income in the period they become definitive rather than being deferred.

Lifecycle

2019-05-30PublishedPublished 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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