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V2809-18 26 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Grants to promote youth self-employment are taxed as income from economic activities

A query was made regarding the tax treatment of a grant from the Generalitat de Catalunya for youth self-employment. The DGT has determined that it must be taxed as income from economic activities.

The question raised

Tax treatment of the aforementioned subsidy in the Personal Income Tax (IRPF).

The DGT's ruling

The subsidy is classified as income from economic activities pursuant to Article 27.1 of the Personal Income Tax Law (LIRPF). As its purpose is to guarantee minimum income during the commencement of the activity, it is treated as a current subsidy, being integrated as income for the fiscal year. There is no exemption or non-subjectivity in the Personal Income Tax regulations for this type of aid.

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