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V1755-22 22 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Grants for expenses or debts are recognised in the period in which the expenses are incurred or the debts are settled

Consultants inquired about the correct timing for recognising a grant received by a community of property intended to cover business expenses and debts. The DGT ruled that the grant constitutes income from economic activity and its recognition must follow accounting standards.

The question raised

Temporal recognition of the grant.

The DGT's ruling

Grants to finance specific expenses are recognized as income in the same fiscal year in which the expenses are accrued. If the grant is intended to cancel debts, it is recognized in the fiscal year in which said cancellation occurs, unless they are granted in relation to specific financing. In these cases, recognition shall be carried out based on the financed element.

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