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A farmer has requested clarification on when to declare income from olive cultivation. The Directorate-General for Taxes (DGT) has ruled that, as a general rule, income must be recognised in the period the sale takes place, regardless of when the payment is actually received.
This ruling clarifies the timing of tax obligations for agricultural activities, reinforcing the accrual principle over the cash basis unless specific criteria are met.
The tax team reviews your specific situation.
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