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Practical manual for Income Tax 2020.

Activity 3: Independent livestock farm classified in division 0 of the IAE

The concept of independent livestock farming is included in sections One and Two of Rule 3 of the Instruction for the application of the rates of Division 0 of the IAE , approved by Royal Legislative Decree 1259/1991, of August 2 ( BOE of the 6th), according to which, the following are considered to be independent livestock farming activities: those that have as their object the exploitation of a group of heads of cattle that are included in any of the following cases:

  1. Grazing or foraging primarily on land that is not farmed or forested by the owner of the livestock.

    For these purposes, it will be understood, in any case, that the lands are exploited by the owner of the livestock when any of the following circumstances occur:

    • That the owner of the cattle is the cadastral owner or owner of the land
    • When you carry out on your own activities such as pasture fertilization, mowing, haymaking, baling, fallowing, harvesting, pruning, browsing, harvesting, etc., necessary to obtain hay, straw or feed that is primarily fed to livestock.

  2. Stabling outside rural estates , not considering as such, livestock that is fed primarily with products obtained from its owner's agricultural or forestry farms, even when the livestock facilities are located outside the land.

  3. Transhumant or transterminant , not considered as such, the livestock that is fed mainly with pastures, silos, hay or feed obtained on land exploited by the owner of the livestock.

  4. Livestock that is fed primarily with feed not produced on the farm where it is raised.

    For these purposes, it is understood that livestock is fed primarily with feed not produced on the farm where it is raised, when the proportion of these is greater than 50% of the total feed consumption, expressed in kilograms.

Differentiated sectors within the independent livestock activity

However, considering independent livestock farming as a single activity for the purposes of the objective estimation method, for the application of the net performance indices it is necessary to distinguish between the income coming from, or attributable to, the following types of farms or differentiated sectors:

  • Meat pigs, meat cattle, meat sheep, meat goats, poultry and rabbit farming.
  • Pig farming, cattle farming, dairy sheep, dairy goats and beekeeping.
  • Dairy cattle.
  • Other livestock activities not expressly included in other sections.