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V2531-20 24 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de la actividad económica

Grants for first-time young farmer installations are split equally between co-owners of a shared holding

A female farmer has requested clarification on how to tax a grant for the installation of young farmers within a shared holding. The Directorate General for Taxes (DGT) has ruled that the grant is considered income from economic activity and must be allocated equally to each co-owner.

The question raised

Taxation in Personal Income Tax (IRPF) of said aid, and whether the aid must be imputed in half to both owners, upon being imputed to the agricultural exploitation under a joint ownership regime.

The DGT's ruling

Subsidies for the development of economic activity are considered income from economic activity pursuant to the Personal Income Tax Law (LIRPF). As this involves an exploitation under joint ownership, the aid is understood to be granted to the entity and must be imputed in equal halves to the owners. The temporal imputation of current subsidies is carried out in the fiscal year of their granting, unless the cash basis is chosen or the option for imputation over four years for initial installation aid is selected.

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