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V2018-14 25 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · imputación temporal

Cash basis accounting not applicable for collection of administrative concession fees

The taxpayer inquired whether concession fee income could be recognised based on actual collections (cash basis) following a payment readjustment. The Directorate General for Taxes (DGT) ruled that the monthly fee does not constitute an instalment sale or a transaction with deferred pricing.

The question raised

Whether the temporal imputation criterion regulated in Article 19.4 of the Consolidated Text of the Corporate Income Tax Law, approved by Royal Legislative Decree 4/2004 of March 5, is applicable to income whose receipt has been subject to deferral.

The DGT's ruling

The monthly fee received for the provision of a transport service is not considered an installment operation or one with a deferred price pursuant to Article 19.4 of the TRLIS. Therefore, the criterion of income imputation based on collections made is not applicable. The jurisprudence allowing the extension of this criterion to other types of income is not applicable to the case of the concession presented.

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