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V1939-22 12 September 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento de la actividad económica

Grants for specific expenses are recognised as income in the tax year the expenses are incurred

The taxpayer asks how to tax a grant from an autonomous community intended to finance expenses related to their economic activity. The DGT rules that such a grant constitutes income from economic activity and its timing for tax purposes must follow accounting standards.

The question raised

Taxation of said aid.

The DGT's ruling

The subsidy received to finance specific expenses must be recognized as income in the same fiscal year in which the expenses it finances are accrued. To determine the yield and its temporal allocation, commercial and accounting regulations apply, specifically Valuation Standard 18 of the General Accounting Plan. This implies that the subsidy is recognized as income based on its purpose and the accrual of the corresponding expenses.

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