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V0080-24 15 February 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad parcialmente exenta

Income from non-monetary grants must be included in the taxable base according to accounting standards

A non-profit agricultural professional organisation has enquired about the tax treatment of a property acquisition granted by the Regional Government of Castilla-La Mancha, and whether its market value can be reduced through an official appraisal. The Directorate General for Taxes (DGT) ruled that the income must be included in the taxable base in accordance with accounting standards and that the valuation of the right received is a matter of fact.

The question raised

How is the acquisition of the real estate by the taxpayer taxed in Corporate Income Tax and the possibility, in the event of its inclusion in the tax base, of reducing the market value of the real estate through an expert appraisal, given that its possession is subject to a limitation on use, without being able to freely dispose of the asset or transfer it.

The DGT's ruling

Income derived from the subsidy received in kind must be included in the Corporate Income Tax taxable base following the imputation to results criterion of Accounting Standard 18 of the General Accounting Plan. The right over the real estate shall be valued at the fair value of the right received at the time of its recognition, in accordance with Article 17.1 of the Corporate Income Tax Law. The determination of said fair value is a matter of fact that must be substantiated and shall be assessed by the Tax Administration.

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