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New guides on the latest Spanish tax and immigration developments.
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A query was made regarding the Personal Income Tax (IRPF) treatment of grants received in 2020 to maintain business activity during COVID-19. The Directorate General for Taxes (DGT) ruled that these grants constitute income from economic activities and must be allocated according to their purpose.
This ruling clarifies that business support grants received during the pandemic are treated as business income rather than other types of income, affecting how they are reported and taxed within the personal income tax framework.
The tax team reviews your specific situation.
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