Skip to content
V2468-16 ·7 June 2016 ·consulta-vinculante Medium impact
Tax

Professional income is recognised on an accrual basis, unless the cash basis is elected

A lawyer working within a community of property seeks guidance on the timing of reporting fees collected in advance. The DGT rules that, unless the cash basis has been elected, income must be recognised on an accrual basis in accordance with accounting standards.

In 6 key points

How it affects those involved

This clarifies the default taxation method for professional activities, reinforcing that income must be reported when earned rather than when received, unless specific election criteria are met.

Lifecycle

2016-06-07PublishedPublished 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