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V0726-20 6 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Agricultural installation grants: recognition in the tax year of final resolution or upon receipt

A query was raised regarding when a grant for the establishment of an agricultural holding should be declared for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that its treatment depends on its purpose and whether the cash basis or accrual basis is applied.

The question raised

Temporal imputation of the subsidy in the Personal Income Tax.

The DGT's ruling

The subsidy is considered income from economic activity. If it is capital-related, it is imputed according to the depreciation of fixed assets; if it is current, in the fiscal year of the expenses or income it offsets. In this case, as its purpose is not specified, it is imputed in the period of the final concession resolution (2017). If the cash basis of accounting is chosen, it is imputed when the money is received.

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