Skip to content
V2180-20 ·29 June 2020 ·consulta-vinculante Medium impact
Tax

CAP subsidies are recognised upon definitive grant approval, unless the cash basis is chosen

A farmer inquired which tax year should be used to declare a CAP subsidy received with delay. The DGT ruled that, as a general rule, it must be declared when the definitive grant is approved and quantified, regardless of when the funds are actually received.

In 5 key points

How it affects those involved

This ruling clarifies the timing of tax recognition for agricultural subsidies, establishing that the accrual principle applies upon formal approval rather than upon receipt of payment, unless the taxpayer opts for the cash basis.

Lifecycle

2020-06-29PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact