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V0501-20 27 February 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · base imponible

Compensation received must be included in the tax base in the period it accrues according to accounting standards

A company inquired whether it should make a tax adjustment for compensation received. The DGT ruled that, as there is no tax regulation modifying the accounting treatment of compensation, accounting standards must be followed.

The DGT's ruling

Compensations must be included in the tax base of the fiscal year in which they have accrued according to accounting regulations. As the Corporate Income Tax Act does not contain rules to modify the accounting treatment of compensation income, no adjustments to the accounting result are appropriate. The accrual principle and the correlation between income and expenses must be respected.

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