Introduction: scheme

Regulations: See Annex I and the instructions for the application of the signs, indexes or modules in the IRPF contained therein in Order HAC /1164/2019, of November 22 ( BOE of the 30th).

Net income is the result of the sum of the net income corresponding to each of the agricultural, livestock and forestry activities carried out by the taxpayer.

The net income corresponding to each activity must be obtained by successively carrying out the operations schematically indicated below:

Phase 1

TOTAL INCOME (including subsidies, compensation and single payment PAC aid)

(×) NET PERFORMANCE INDEX

(*) When the recipient of the direct single payment aid from the CAP has not obtained income from agricultural or livestock activities, the net return index to be applied is 0.56.

= PREVIOUS NET YIELD

Phase 2

(−) AMORTIZATION OF TANGIBLE AND INTANGIBLE FIXED ASSETS (excluding forestry activities)

= REDUCED NET INCOME

Phase 3

(×) CORRECTION INDEXES (depending on the type of activity and certain circumstances)

= NET YIELD OF MODULES

Phase 4

(−) GENERAL REDUCTION: 20%

(−) REDUCTION YOUNG FARMERS: 25%

(−) EXTRAORDINARY EXPENSES DUE TO EXCEPTIONAL CIRCUMSTANCES (fires, floods, subsidence, etc., reported to the AEAT in a timely manner)

= NET INCOME FROM THE ACTIVITY

Phase 5

(−) REDUCTION DUE TO IRREGULARITY: 30% (Reductions in returns generated over more than 2 years or obtained in a notoriously irregular manner)

= REDUCED NET PERFORMANCE OF THE ACTIVITY