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Form 100. Personal Income Tax Declaration 2019

7.4.4.4. Revenues

Sales or provision of services 

It includes all of the full income, whether in money or in kind, derived from the delivery of the products that constitute the object of the activity, as well as, where appropriate, those from the provision of work and ancillary services to the main activity.

When consideration is provided and it is significantly lower than the normal market value of the goods sold and the services provided, the valuation of the same will be carried out at their normal market value.

In economic operations carried out with a company with which there are related relationships, the owner of the activity must imperatively carry out their valuation at the normal market value. Normal market value will be understood as that which would have been agreed upon by independent persons or entities under conditions of free competition.

Consideration of compensation or passed-on VAT amounts:

  1. In the case of activities included in the special regime for agriculture, livestock and fishing of the aforementioned tax, the compensation received must be included among the corresponding income derived from sales or from the provision of work or services.

  2. If the activity is covered by the simplified VAT regime, the amount of the passed-on fees will not be counted as income.

Transformation, processing or manufacturing activities 

The value of the natural, plant or animal products used in the corresponding production process will be recorded as income, in accordance with their market prices at the time of their incorporation into said process. Likewise, income corresponding to self-consumption, subsidies and compensation will be included, where applicable.

If during the year 2019 products manufactured in years prior to 1998 had been transferred, the value of the natural products used in the production process must be included as income for the year 2019, in accordance with their market prices at the time of their production. incorporation into transformation, processing or manufacturing processes.

Self-consumption

It includes both the deliveries of goods and services intended for the private use or consumption of the owner of the activity or the other members of his or her family unit, as well as the deliveries of goods or services made to other people free of charge. In both cases, the valuation of these operations must be carried out at the normal market value of the goods or services transferred, or that have been subject to self-consumption.

Subsidies

  • Capital subsidies:

    They are those granted to favor the establishment of the activity or the making of investments in fixed assets.

    They are allocated as income in proportion to the depreciation experienced in the year (amortization) for the assets financed with said subsidies.

    In the case of non-depreciable assets, the subsidy will be attributed to the result of the year in which the disposal or derecognition of the assets occurs, with application in box 0188, of the 30 percent reduction because they are legally considered as returns obtained in a notoriously irregular manner over time.

  • Current subsidies:

    They are those granted, in general, to ensure a minimum profitability or compensate for losses caused in the activity.

    They are fully charged as income in the period in which they are earned.

  • Subsidies awarded to finance specific expenses : They are allocated as income in the same year in which the expenses they are financing are accrued.