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A query was raised regarding the taxation of a subsidy received for a pilot childcare project. The Directorate General for Taxes (DGT) ruled that the subsidy constitutes income from an economic activity and must be recognised when the definitive grant is awarded.
This ruling clarifies that subsidies intended to offset income losses are not exempt but are integrated into the taxpayer's business income, affecting the timing of tax liability based on the formal award of the grant.
The tax team reviews your specific situation.
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