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V1564-18 6 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ayuda pública

Municipal public aid may be exempt or taxed as patrimonial gain in IRPF

The consultant asks whether public municipal aid received in 2017 must be declared. The tax authority responds that if the aid falls within the exemption criteria for risk of exclusion or social emergency, it is exempt; otherwise, it is considered patrimonial gain and must be included in the general tax base.

The question raised

Whether said aid must be included in the 2017 Personal Income Tax (IRPF) return, and if so, under which concept.

The DGT's ruling

If the aid falls within Article 7.y) of the LIRPF (groups at risk of exclusion, social emergency, basic needs, etc.), its tax impact is nil. If it does not meet these requirements, the aid constitutes a capital gain that must be included in the general taxable base in the period in which it is received. The amount of said gain shall be the value of the subsidy received.

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