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V2621-19 25 September 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · imputación temporal

Recognition of grants in Corporate Tax is governed by accounting standards

A company specialising in the rental of social housing has requested clarification on how to tax a grant received following an appeal. The Directorate General for Taxes (DGT) has ruled that, in the absence of specific criteria in the Corporate Tax Act, the temporal recognition criteria set out in accounting standards must be applied.

The question raised

1) What would be the taxation of the subsidy in Corporate Income Tax.

The DGT's ruling

The LIS does not establish a specific criterion for the temporal imputation of income derived from subsidies. Therefore, pursuant to Article 10.3 of the LIS, the temporal imputation criterion established by accounting standards must be applied. Furthermore, the company may opt for the special regime for residential leasing if it meets the requirements of Article 48 of the LIS.

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