April 25, 2023.- The Official State Gazette has today published the order of the Ministry of Finance and Public Function to reduce the Net Return Indices applicable in 2022 in the system of objective estimation of the Personal Income Tax (IRPF), the so-called system of modules, for farmers and livestock farmers.
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 Castilla y León 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, other important minorities affecting a provincial area are established, which are:
In Ávila:
- Legumes: Lentils and veza bean from 0.26 to 0.09
- Legumes: Dried peas from 0.26 to 0.13
- Leek from 0.26 to 0.13
- Fig from 0.37 to 0.13
- Cherry, plum and pear from 0.37 to 0.19
- Walnut from 0.26 to 0.05
- Olive products from 0.26 to 0.09
In Burgos:
- Alfalfa from 0.37 to 0.26
In León:
- Legumes: Chickpeas and lentils from 0.26 to 0.13
- Cherry from 0.37 to 0.19
- Plum from 0.37 to 0.07
In Palencia:
- Legumes: Chickpeas from 0.26 to 0.13
- Legumes: Veza grano de 0,26 a 0.05Forrajes: Veza from 0.37 to 0.19
In Salamanca:
- Apple from 0.37 to 0.26
- Pear from 0.37 to 0.19
- Cherry and plum from 0.37 to 0.13
In Segovia:
- Sunflower from 0.32 to 0.16
- Walnut from 0.26 to 0.09
In Soria:
- Oats from 0.26 to 0.09
- Rye and triticale from 0.26 to 0.13
- Almond from 0.26 to 0.05
- Legumes: Lentils from 0.26 to 0.05
- Legumes: Chickpeas from 0.26 to 0.13
- Rapeseed and sunflower from 0.32 to 0.16
In Valladolid:
- Legumes: lentil and veza grain from 0.26 to 0.13
- Olive yields from 0.26 to 0.09
- Horticultural products: Green Jewish from 0.26 to 0.05
- Horticultural products: Leek from 0.26 to 0.18
In Zamora:
-Cereals: oats, barley, rye, wheat and triticale from 0.26 to 0.13
-Forages: Alfalfa from 0.37 to 0.26
-Fodder: veza from 0.37 to 0.19
- Horticultural products: Green peas from 0.26 to 0.18
- Horticultural products: Pumpkin from 0.26 to 0.05
In addition, additional reductions are made in certain areas and crops:- Cereals in 942 municipalities, with reductions below the national level (196 in Burgos, 159 in Valladolid, 129 in Soria, 116 in Palencia, 107 in Zamora, 101 in Segovia, 54 in Ávila, 49 in León and 31 in Salamanca).
- Forages in 7 municipalities (5 in Palencia, one in Burgos and one in Valladolid).
- Nuts in 10 municipalities (8 in Valladolid and one in Soria and Zamora).
- Horticultural products in 5 municipalities (3 in Zamora and one in Ávila and Valladolid).
- Sugar beet in 6 municipalities (3 in Ávila, 2 in León and one in Zamora).
- Grape for wine with D.O. in 42 municipalities (21 in Burgos, 13 in Valladolid, 3 in Soria, 2 in León and in Segovia and one in Salamanca).
- Grape for wine without D.O. in 1 municipality of Zamora
For Castilla y León, the combined effect of all these minorae may be to reduce the tax base of the claimants under the system of objective agrarian estimation of about 138.5 million euros, which will benefit about 57,000 farmers and ranchers.