The Ministry of Finance and Public Functions published an order established in the Official State Gazette (BOE) this Tuesday. 25% reduction in net return overall inside Personal Income Tax (IRPF) this will benefit 800,000 farmers And farmers taxed by the module system.
Specifically, this order includes: Recommendation of the Ministry of Agriculture, Fisheries and Food It takes into account drought and other exceptional circumstances affecting the profitability of many agricultural and livestock farms in 2022, such as the war in Ukraine, causing increased production costs.
In addition to the overall 25% discount for all farmers and ranchers, certain sectors that are more vulnerable will benefit from certain discounts.. Thus, while the discount will be 50 percent in olive groves, almond cultivation and beekeeping, it will be 30 percent in cereals, oilseeds and pulses, chestnut, peach, nectarine, apricot and other livestock sectors.
The Government estimated that the set of discounts envisaged in this ranking represented: €1.807 million reduction in tax baseto be most comprehensive in the last decade..
In this way, this order also allows declarants to make an objective agricultural estimation of personal income tax: Reducing the previous net yield by 35% for the purchase of agricultural diesel and 15% for the purchase of fertilizersAs determined by Resolution HFP/1172/2022 of November 29, which developed the method of objective estimation of personal income tax for 2023.
Moreover, The reductions in the corrective indices created last year continue for feed purchased from third parties and crops on irrigated lands using electricity.
Specifically, the rate applied to livestock operations that feed animals with feed and other products purchased from third parties is set at 0.5, provided they represent more than 50% of the amount of food products consumed, and applies to both intensive and extensive livestock sectors. . The correction index for crops using electricity on irrigated lands has been reduced to 0.75.
Also lots of regional, provincial or municipal level discounts in other productions, where those approved for non-citrus fruit trees in key production areas stand out.
Luis Planas, Minister of Agriculture, Fisheries and Food, claimed recently that the Spanish Government is working on drafting measures to combat the “exceptional situation” of drought.
As a matter of fact, the head of the branch presented a report on the fight against drought to the Council of Ministers last week. Including actions of 2,130 million eurosan initiative that he describes as “absolutely essential to better use of water and lower energy bills”.