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V0621-18 7 March 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subvención de capital

Capital grants for acquiring fixed assets are recognised as income as the asset is depreciated

A professional received a grant to purchase their first boat. The DGT ruled that, as it is a capital grant to finance assets used for business purposes, it must be recognised as income from economic activity.

The question raised

Allocation of the grant received.

The DGT's ruling

The capital grant shall be recognized as income for the fiscal year in the same proportion as the financed investment is depreciated. As long as the fixed assets are used for the activity, the income is recognized in proportion to the depreciation allowance made in each period. To determine the net income, the Corporate Tax rules and the accrual principle shall apply.

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