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Practical manual for Income Tax 2023.

8. Other income

Within this heading, the following concepts, among others, must be computed:

a) Work carried out for company , valued according to the cost of production of the fixed assets produced by the company itself.

b) Excesses and applications of provisions and impairment losses .

c) Other management income .

For example, compensation for mediation services performed accidentally, or for the occasional provision of certain services (transport, repairs, advice, reports, etc.), or income for services to staff.

d) Compensation received from insurance companies for incidents that have affected the company's products (stock of merchandise, raw materials, containers, packaging, etc.), provided that their destruction occurs.

It should also be noted that:

  • If what occurs is a repairable damage , the compensation received from the insurance company will be income from the activity that offsets the expense of the repair.

  • If the compensation affects elements of the fixed assets affected , its amount will not be computed as income, but must form part of the sale value of the same for the purposes of determining the resulting capital gain or loss.