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V0841-22 20 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Repayment of a previously received current grant is a deductible expense in the year of reimbursement

A taxpayer inquired whether the repayment of a €7,500 grant, received in 2020 and declared as income, could be deducted in 2021. The DGT ruled that, as it is a current grant, its reimbursement constitutes a deductible expense in the tax year in which the repayment occurs.

The question raised

Impact of the subsidy reimbursement on Personal Income Tax (IRPF) taxation.

The DGT's ruling

For the determination of net income under the direct estimation method, the Corporate Tax rules and Rule 18 of the General Accounting Plan are applied. Current subsidies are recognized as income for the fiscal year. Therefore, the repayment of a current subsidy received and declared in a previous fiscal year has an impact as a deductible expense in the fiscal year in which the reimbursement is made due to incompatibility.

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