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V2180-20 29 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

CAP subsidies are recognised upon definitive grant approval, unless the cash basis is chosen

A farmer inquired which tax year should be used to declare a CAP subsidy received with delay. The DGT ruled that, as a general rule, it must be declared when the definitive grant is approved and quantified, regardless of when the funds are actually received.

The question raised

Temporal imputation of the aforementioned CAP subsidy.

The DGT's ruling

CAP subsidies are income from economic activities and, as they are current, are imputed in the period in which the final granting resolution is recognized. If the taxpayer opts for the cash basis, the subsidy shall be imputed in the period in which the collection occurs.

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