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V1216-19 30 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Grants for starting businesses in rural areas are treated as income from economic activities

A taxpayer asks how to account for a grant received to set up a music school. The DGT determines that, as it is not specifically intended for fixed assets, it is an operating grant and must be recognised in the tax year the final resolution is issued.

The question raised

Temporal imputation of the subsidy in the Personal Income Tax.

The DGT's ruling

The subsidy is classified as income from economic activities. Since it does not require the acquisition of fixed assets or the payment of multi-year expenses, it is a current subsidy that must be imputed in the tax period of the final granting resolution. If the cash basis is chosen, it shall be imputed in the period in which the collection occurs.

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