7.4.4.6. Correction indices

1. Use of external means of production in agricultural activities 

   When agricultural activities are carried out using only external means of production, without taking into account the land, and except in the case of sharecropping and similar figures, the 0.75 index will be applied.

   To apply this index, the holder must not work personally in the activity, except for specific management, organisation and planning tasks; Using an entirely employed workforce.

   In addition, all property of the tangible fixed assets used for the activity must be contributed by third parties, excluding, together with the land, all those elements linked to the land and to the permanent operation (wells, trees, constructions).

2. Use of salaried staff

   When the cost of the salaried staff exceeds the percentage of the total volume of income expressed, the corrective index indicated will be applicable:

   Percentage	CONTENTS
   More than 10 per 100	0.90
   More than 20 per 100	0.85
   More than 30 per 100	0.80
   More than 40 per 100	0.75

   This corrective index cannot be applied when the corrective index "for the use of external means of production" is applicable.

3. Crops grown on leased land

   When the crops are grown, in whole or in part, in leased land, index 0.90 will be applicable to yields from crops on leased land.

   When it is not possible to limit these yields, it will be prorated according to the percentage of the leased land dedicated to each crop compared to the total area, own and leased, dedicated to that crop.

4. Fodder purchased from third parties in more than 50% 

   When livestock activities feed cattle with fodder and other food products purchased from third parties, representing more than 50 per cent of the amount of consumed, the following corrective indices will be applied: 100

   • Index 0.95 for intensive pig farming activities of meat and poultry.

   • Index 0.75 for the remaining activities

   For the purposes of this index, the amount of feed and other own products will be assessed according to their market value.

5. For organic farming activities

   When production meets the requirements of Council Regulation (EC) 834/2007 of 28 June 2007 on the production and labelling of organic products, the corrective index 0.95 will be applied.

6. For irrigated land crops, which use electricity to this end

   When the crops are wholly or partly made in irrigated land and average daily consumption, in terms of energy in KWh, of the monthly invoice for the tax period with the highest consumption is at least 2.5 times higher than that corresponding to the two months from the same tax period, provided that the taxpayer, or the community of tax payers in which they participate, are registered in the territorial register corresponding to the Special Taxes management office.

   Notes common to the corrective indices for organic farming and or irrigated land crops, using electricity

   • To ensure that these two corrective indices are correctly met, the part of the total net yield must be indicated, which is from organic farming lands and separately from irrigated land using electricity. If both corrective indices are applicable to cultivated land, they must be entered separately.

   • It must also differentiate whether the land is its own or originates from leased land.

7. Companies whose net income does not exceed 9,447.91 euros

   The 0.90 index may be applied when the sum of the net yields reduced from all the agricultural and livestock activities carried out by a the same holder does not exceed 9,447.91 euros per year and does not have the right to the reduction of 25 per cent of Act 100/19, for the first installation in priority holdings. 1995

   If the net yield of any of the agricultural or livestock activities carried out by the taxpayer is negative, this rate will be applied when the total sum is positive, but not more than 9,447.91 euros. In this case, the program applies index 0.90 to all activities, both with positive and negative performance.

8. Index applicable to certain forestry activities

   When forest farms are operated in accordance with technical forest management plans, mountain management, desasocratic plans or plans of forest repopulation approved by the competent forestry authority, provided that the average production period, according to the species in question, determined in each case by the competent forestry authority, at least twenty years, will be subject to the correction rate 0.80.

   This corrective index may only be applied to forestry activities.

   When part of the forest production meets the requirements and another part does not, the income from one and the other must be separated; And each sector will be included in the programme as if it were an independent activity.