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A taxpayer engaged in the textile trade has requested clarification on how to tax a received grant. The DGT ruled that the grant constitutes income from an economic activity and must be accounted for according to its specific purpose.
This ruling clarifies the tax treatment of compensatory grants, ensuring they are integrated into the taxpayer's business income rather than being treated as non-business income, which affects the calculation of net profit for tax purposes.
The tax team reviews your specific situation.
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