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New guides on the latest Spanish tax and immigration developments.
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A taxpayer inquired about the timing for declaring a grant received to modernise a farming business. The DGT ruled that, as it is a capital grant for the acquisition of fixed assets, the income must be recognised in the tax year in the same proportion as the depreciation of said investment.
This ruling clarifies the accrual method for capital grants, ensuring that income recognition is aligned with the depreciation of the underlying asset rather than the date of receipt.
The tax team reviews your specific situation.
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