- This is a linear reduction that takes into account the drought and the economic consequences of the war in Ukraine
- In addition, it includes a reduction of between 30% and 50% for all livestock sectors and those of cereals, legumes, oilseeds, olives, apricot, peach, nectarine, almond and chestnut
- There is also a decrease in the net yield of 35% for the purchase of agricultural diesel, and 15% for the purchase of fertilizers
- The reductions established last year for farmers who have used electricity for irrigation and for farmers for the use of feed purchased from third parties are maintained
- All reductions may reduce the tax base by about 82 million euros in the Region of Murcia
April 25, 2023. The Official State Gazette has today published the order of the Ministry of Finance and Public Service to reduce 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 Region of Murcia 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 and veal from 0.13 to 0.09
- Calf bovine 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 of 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, additional reductions are made in certain areas and crops, which are as follows:
- Apricot in 9 municipalities, with reductions greater than the national.
- Peach and nectarine in 3 municipalities, with reductions greater than the national.
- Cherry and plum in 3 municipalities.
- Varied horticultural products, in 15 municipalities
- Almond in 4 municipalities, with reductions greater than national - Citrus in 2 municipalities
- Cereals, potatoes, pears and wine grapes for a single different municipality, depending on what production.
The combination of all these minorae may mean for the Region of Murcia a reduction in the tax base of the declarants in the system of objective agrarian estimation of about 82 million euros that will benefit about 24,000 farmers and ranchers.