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An individual engaged in agricultural activity asks which tax year should be used to declare 2016 CAP subsidies to be received in 2017. The DGT rules that the timing of the declaration depends on whether the taxpayer applies the accrual basis or the cash basis of accounting.
This clarifies the tax treatment of agricultural subsidies, confirming that the timing of income recognition is determined by the taxpayer's chosen accounting method (accrual vs. cash).
The tax team reviews your specific situation.
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