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V2695-20 2 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · arrendamiento de negocio

Business lease advances must be recognised in the tax year they become due

A query was raised regarding whether a €30,000 advance for an industrial lease should be taxed in the year of receipt or apportioned over time. The DGT ruled that the full amount must be recognised in the tax year in which it becomes due.

The question raised

Whether the referred payment corresponding to 30,000 euros is imputed to Personal Income Tax in the year 2020, the moment it is collected, or if it is prorated over 5 fiscal years.

The DGT's ruling

Income from the leasing of businesses is considered income from movable capital. As there is no special rule for the accrual of this type of income, the general rule of imputation applies. Therefore, the income must be imputed to the tax period in which it becomes due to the recipient.

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