The Official State Gazette (BOE) has published today the order of the Ministry of Finance to reduce the net return rates in the system of objective estimation of the Personal Income Tax (IRPF) of 2024, 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 such as the damage that occurred in 2024 that affected the profitability of many agricultural and livestock farms.
Farmers and ranchers who are taxed by the module system will be able to apply a 5% reduction in net yield on their income statement. The order published today also establishes significant reductions, as sectors such as sheep and goats of milk and meat also benefit from a specific reduction of 30%, due to the effects of drought and bluetongue disease.
It also includes more than 10,800 specific minorums at the regional, provincial or municipal level for other productions, including those approved for cereals and non-citrus fruits.
It is estimated that all the reductions contemplated in the order represent a reduction in the tax base of the order of 31 million euros for the 10,500 farmers and ranchers in Rioja are taxed by the system of modules.
The reductions applied reflect the climate adversity situations of the year 2024, among which the drought that affected mainly the south and east of the country and the extraordinary episode of the dana stand out.
In addition, farmers and breeders can benefit from other deductions such as the rate applicable to livestock activities that feed livestock with feed and other food products purchased from third parties that represent more than 50% of the amount consumed. The single index for all livestock sectors will be 0.5.
The corrective coefficient for the use of electricity for irrigation is also applicable, with a 25% reduction in the net yield extensible to all irrigation and not only to seasonal electricity consumption.
In addition, the reduction in net yield of 35% for the purchase of agricultural diesel, and 15% for the purchase of fertilizers applied in the previous two years, is maintained.
Likewise, the exemption from the income tax for the collection of the eco-regimes of the Common Agricultural Policy (CAP) is maintained.
In La Rioja farmers and livestock farmers can benefit from the reductions established at national level, which are the following:
- Sheep and goat meat from 0.13 to 0.09
- Sheep and goat milk from 0.26 to 0.18
In addition, additional reductions were made in certain areas and crops:
- Cereals: Avena in 29 municipalities
- Cereals: Cebada in 39 municipalities
- Cereals: Rye in 29 municipalities
- Cereals: Wheat in 39 municipalities
- Cereals: Triticale in 39 municipalities
- Non-citrus fruits: Cereza in 8 municipalities
- Non-citrus fruits: Plum in 1 municipality
- Non-citrus fruits: Nectarina in 4 municipalities
- Non-citrus fruits: Pera in 48 municipalities
- Legumes: Grain peas in 39 municipalities
- Legumes: Jewish bean in 140 municipalities
- Oilseeds: Colza in 29 municipalities
- Horticultural products: Pepper in 123 municipalities
- Horticultural products: Tomato in 123 municipalities
- Grape for wine with D.O. in 105 municipalities