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V0105-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Grants to compensate for loss of income for self-employed individuals are taxed as income from economic activities

A self-employed woman asks how to tax a grant from her Autonomous Community intended to compensate for the drop in income caused by the COVID-19 epidemic. The DGT responds that these aids are considered income from economic activities and must be attributed to the tax year in which they are granted.

The question raised

Taxation of said subsidy.

The DGT's ruling

The subsidy received to compensate for the decrease in income from economic activity is classified as income from economic activities pursuant to Article 27.1 of the Personal Income Tax Law (LIRPF). Its temporal allocation must be made in the fiscal year in which it is granted, as it is a current subsidy intended to compensate for the loss of income.

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