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V0568-23 10 March 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · base imponible

Public aid for fire damage repairs is not included in the IRPF taxable base

A taxpayer inquired whether a grant received from an Autonomous Community to repair home damage caused by a forest fire is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that such aid is not included in the taxable base, unless it exceeds the actual repair costs.

The question raised

Possible application of the fifth additional provision of the Tax Law to the subsidy.

The DGT's ruling

Public aid to repair assets damaged by fire is not included in the IRPF taxable base. If the aid exceeds the repair cost, that excess shall be included. Repair costs covered by the aid shall not be tax deductible nor shall they be accounted for as an improvement.

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