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V0536-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Economic activity grants are recognised as income in the tax year the expenses are incurred

A fishing partnership has requested clarification on how and when to report grants received for fuel and fishing suspensions. The DGT has ruled that these grants constitute income from economic activity and their timing for tax purposes must follow accounting standards.

The question raised

Taxation and allocation of these subsidies.

The DGT's ruling

Subsidies intended to ensure minimum profitability or to finance specific expenses are considered income from economic activity. Their temporal allocation must follow accounting regulations, being integrated as income in the fiscal year in which the expenses being financed accrue. The resulting net income is attributed to the co-owners according to the rules of the Personal Income Tax Law.

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