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V2116-25 6 November 2025 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · devengo

Income from property sale arises upon transfer of control under accounting rules

A patrimonial entity asks when income from property sale is recognised for Corporate Income Tax and whether the debt is prescribed. The DGT responds that income should be attributed to the exercise in which the accounting recognition occurs, based on the transfer of control of the asset.

The question raised

Question posed: The moment at which the accrual of the real estate sale operation occurred for Corporate Income Tax purposes, and specifically whether the tax due from the transfer is time-barred.

The DGT's ruling

Income from the sale of real estate must be recorded accounting-wise when the transfer of control over the asset to the customer occurs. For tax purposes, pursuant to Articles 10.3 and 11.1 of the LIS, the income is included in the tax base in the fiscal year in which it accrues in accordance with accounting regulations, regardless of its collection. To determine the accrual, it must be analyzed whether the customer assumes the risks and benefits, physical possession, and acceptance of the asset.

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