The Official State Gazette has today published the order of the Ministry of Finance and Public Service for the reduction of the Net Return Indices applicable in 2022 in the system of objective estimation of Personal Income Tax (PERSONAL INCOME TAX), the so-called system of modules, for farmers and ranchers.
This order includes the proposal of the Ministry of Agriculture, Fisheries and Food (MAPA) to reduce these indices and takes into account the incidence of drought and other exceptional circumstances that affected the profitability of many agricultural and livestock farms during 2022, such as the war in Ukraine, which caused an increase in production costs.
The order establishes an overall reduction in net yield of 25%, which may be applied by the approximately 800,000 farmers and ranchers who are taxed by the module system. Certain sectors in the most vulnerable situation also benefit from specific reductions, which are 50% for olive, almond and beekeeping, and 30% for cereals, oilseeds and legumes, chestnut, peach, nectarine, apricot and the other livestock sectors.
It is estimated that all the reductions contemplated in the order published today represent a reduction in the tax base of the order of 1.807 billion euros, and is the most far-reaching of the last decade.
The order also allows the claimants in the Agrarian Objective Estimate of the IRPF to reduce the previous net yield by 35% for the purchase of agricultural diesel, and 15% for the purchase of fertilizers, as established in Order HFP/1172/2022, of 29 November, which develops the method of objective estimate of the IRPF for 2023.
In addition, the reductions in the correction rates that were established last year for feed purchased from third parties and for crops on irrigated land using electrical energy are maintained. Specifically, the rate applicable to livestock activities feeding livestock with feed and other products purchased from third parties is set at 0.5, provided that they represent more than 50% of the amount of food consumed, and applies to both intensive and extensive livestock sectors. The corrective rate for irrigated land crops using electric power is reduced to 0.75.
The reductions in the net return indices established for the Autonomous Community of Cantabria are as follows:
Agricultural sectors:
- Cereals, legumes and oilseeds from 0.26 to 0.18
- Oilseeds from 0.32 to 0.22
- Olive products from 0.26 to 0.13
- Apricot, peach and nectarine from 0.37 to 0.26
- Almond from 0.26 to 0.13
- Chestnut from 0.26 to 0.18
Livestock sectors:
- Apiculture from 0.26 to 0.13
- Bovine milk from 0.20 to 0.14
- Beef from 0.13 to 0.09
- Bovine breeding from 0.26 to 0.18
- Sheep and goat meat from 0.13 to 0.09
- Sheep and goat milk from 0.26 to 0.18
- Pork meat or from 0.13 to 0.09
- Breeding pig from 0.26 to 0.18
- Poultry farming, from 0.13 to 0.09
- Cuniculture from 0.13 to 0.09
- Equine from 0.32 to 0.22
In addition, there are important minorae in certain areas and crops, almost all related to horticultural products:
- Horticultural products of different types in 15 municipalities
- Fodder in 8 municipalities, with a reduction from 037 to 0.19.
In addition, the indices for barley in three municipalities are reduced.
All of these reductions may mean a reduction in the tax base of the claimants in the system of objective agricultural estimation of approximately 18 million euros for Cantabria, which will benefit some 5,000 farmers and livestock farmers.