Current and capital subsidies

In relation to the subsidies received, capital and current subsidies must be distinguished within them.

• Capital subsidies are those whose primary purpose is to encourage the installation or making of investments in fixed assets (land, buildings, machinery, facilities, etc.) and are recognized as income in the same extent to which the fixed assets in which they were materialized are depreciated.

  However, in those cases in which the assets are not susceptible to amortization, the subsidy will be applied as full income for the year in which the asset financed with said subsidy is sold or removed from inventory, applying the 30% reduction. typical of the returns obtained in a notoriously irregular manner over time .

• Current subsidies , which are those that are normally granted to guarantee a minimum profitability or compensate for losses caused in the activity, are computed in their entirety as one more income for the period in which it is firmly recognized. the granting of the subsidy and its quantification, regardless of the moment in which it is received and unless the taxpayer has opted for the criteria of collections and payments in which case they will be computed in the period in which they are collected.

  Note: Please note that the following aid is taxed as current subsidies:

  • Extraordinary and temporary direct aid to defray the price of diesel consumed by farmers and ranchers who are entitled to the partial refund of the Hydrocarbon Tax on diesel for professional use in article 52 ter of the Law 38/1992, of December 28, on Special Taxes or the Special Tax of the Autonomous Community of the Canary Islands on Fuels Derived from Petroleum, provided for in articles 24 et seq. of Royal Decree-Law 20/2022, of December 27 , measures to respond to the economic and social consequences of the War in Ukraine and support for the reconstruction of the island of La Palma and other situations of vulnerability ( BOE of December 28).

  • A direct aid to the agricultural sector granted in 2023 in compensation for the increase in costs caused by the increase in the price of fertilizers , derived from the situation created by the invasion of Ukraine provided for in article 30 of Royal Decree-Law 20/2022, of December 27 ( BOE of December 27), developed in the Order APA /122/2023, of February 8 ( BOE of February 13), which specifies certain requirements and conditions.

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

  See in this regard the registration and valuation standard 18 of the General Accounting Plan.