Tax specialties of certain subsidies and public aid
A. Subsidies from the Common Agricultural Policy and other public aid (current subsidies)
Regulations: Fifth Additional Provision Law IRPF
Positive income arising from the following will not be included in the tax base:
• The receipt of the following aid from the Community agricultural policy:
- Definitive abandonment of vineyard cultivation.
- Bonus for uprooting apple orchards.
- Bonus for uprooting banana trees.
- Permanent abandonment of milk production.
- Definitive abandonment of the cultivation of pears, peaches and nectarines.
- Starting of pear, peach and nectarine plantations.
- Definitive abandonment of the cultivation of sugar beet and sugar cane.
• The perception of the following aid from the Community fisheries policy:
- Permanent suspension of a vessel's fishing activity and its transfer for the establishment of joint ventures in third countries.
- Definitive abandonment of fishing activity.
• The receipt of public aid aimed at repairing the destruction , due to fire, flooding or collapse, of heritage elements.
• The receipt of aid for abandoning road transport activity paid by the Ministry of Public Works to transporters who meet the requirements established in the regulations governing the granting of said aid.
See Order FOM /3218/2009, of November 17 (BOE of the 30th).
• The receipt of public compensation for the compulsory slaughter of animals intended for breeding of the livestock, within the framework of actions aimed at the eradication of epidemics or diseases.
• Public aid other than that listed above received for the repair of damage to property assets due to fire, flooding, subsidence or other natural causes will only be included in the tax base in the part that exceeds the cost of repairing them.
In no case will the repair costs, up to the amount of the aforementioned aid, be tax deductible or counted as an improvement.
Public aid received to compensate for the temporary or permanent eviction for identical reasons of the premises in which the owner of the economic activity carried out the same be included in the personal income tax base.
Rules for calculating income that is not included in the taxable base of personal income tax
Although the subsidy or public aid attempts to absorb any possible loss experienced in the assets, in those cases in which the amount of these subsidies or aid is less than the losses or decreases in value that, where applicable, have occurred in the assets, the negative difference may be recorded in the declaration as a capital loss.
Where there are no losses, only the amount of the aid will be excluded from taxation.
The following table shows the tax treatment of these subsidies and public aid based on the amount received and the result produced (capital gain or loss) in the elements to which the aid or subsidy refers.
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Notes to the table: (*) Determined in accordance with the general rules of personal income tax for calculating the amount of capital gains and losses, without taking into account the amount of aid or subsidy. (Back) (**) This assumption may occur in cases where the realizable value of the damaged or destroyed assets is greater than the net book value of the same assets. (Back) |
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| Sign of the alteration of the patrimonial produced (*) | Amount of the grant or aid received | Income to be included in the declaration |
|---|---|---|
| Loss | Greater than the patrimonial loss | None |
| Less than the capital loss | Loss of assets (difference between the subsidy or aid received and the loss experienced) | |
| Revenue (**) | Any | Only the capital gain obtained |
B. Forestry subsidies
Regulations: Fourth Additional Provision Law IRPF
Subsidies granted to those who exploit forest farms managed in accordance with technical forest management plans, forest management, forestry plans or reforestation plans approved by the competent forestry authority will not be included in the tax base, provided that the average production period, depending on the species in question, is equal to or greater than 20 years.
C. Financial aid for high-level athletes
Regulations: Art. 4 Regulation IRPF
By virtue of the exemption established in article 7.m) of the Income Tax Law for these grants, financial aid for sports training and development, with a limit of euros per year, will not be included among the income from professional activities that may be carried out by those who have been recognised as high-level athletes.
The exemption is subject to compliance with the following requirements:
- That its beneficiaries have been recognized as high-level athletes, in accordance with the provisions of Royal Decree 971/2007, of July 13, on high-level and high-performance athletes (BOE of the 25th).
- That they are financed, directly or indirectly, by the Higher Sports Council, by the Olympic Sports Association, by the Spanish Olympic Committee or by the Spanish Paralympic Committee.