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V1665-21 ·31 May 2021 ·consulta-vinculante Medium impact
Tax

Grants to compensate for loss of income for the self-employed are taxed as income from economic activities

A self-employed individual inquired which tax year should be used to declare a grant received in advance in 2020 but officially granted in 2021. The DGT ruled that it must be attributed to the tax year in which the definitive grant is recognised.

In 5 key points

How it affects those involved

This ruling clarifies the timing of tax liability for self-employed individuals receiving grants, ensuring that income is reported in the year the grant is formally approved rather than when funds are initially received.

Lifecycle

2021-05-31PublishedPublished 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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