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V2350-24 14 November 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · base imponible

EU grants must be included in the tax base according to accounting accrual

A query was raised regarding the tax treatment of grants received through a European Union framework programme. The DGT ruled that these must be taxed as income in the financial year in which they accrue, in accordance with accounting standards.

The question raised

Tax treatment of this type of European grant in corporate income tax

The DGT's ruling

The taxable base for Corporate Income Tax is the accounting result adjusted for tax purposes. As there are no rules in the LIS (Corporate Income Tax Law) that correct the accounting treatment of these grants, the criteria of the General Accounting Plan are applied. Therefore, grant income is subject to tax and not exempt, and must be included in the taxable base in the fiscal year in which they have been accrued according to accounting regulations.

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