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A public forestry entity inquired whether grants paid must be reported using Form 346. The Directorate-General for Taxes (DGT) ruled that all grants related to agricultural, livestock, or forestry activities must be declared, regardless of their tax treatment for Personal Income Tax (IRPF) purposes.
This ruling clarifies the reporting obligations for entities receiving forestry grants, ensuring that all such subsidies are disclosed via Form 346, even if they are exempt from or treated differently within the IRPF calculation.
The tax team reviews your specific situation.
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