Gross income

Once the "Product(s)" that correspond to the activity carried out have been selected, the income from the products obtained or the services provided will be reflected for each of them.

As a general rule, income should be entered in the first row of the data capture window, so that the program can apply the general net performance indices.

However, in anticipation of the fact that, due to exceptional circumstances, reduced net yield indices may be approved for certain crops, types of livestock or forest species and in certain areas, additional rows are enabled in the window in which, together with the income, the specific index applicable may be indicated when it is different from the general one.

In agricultural activities, you should take into account the distinction that appears on the screen between income from crops on your own land and from rented land.

When it is not possible to delimit said income, it will be prorated based on the percentage that the leased land dedicated to each crop represents with respect to the total surface area, owned or leased, dedicated to that crop.

When you are entitled to corrective rates for organic farming and/or crops on irrigated land that use electricity, the following data must be defined for each type of product, and depending on whether the income comes from crops on own land or/and on rented land, or the type of livestock farm, based on the net yield:

1. Portion of the resulting net yield that comes from organic farming.

2. Portion of the net yield resulting from irrigated land that uses electric power.

3. Part of the resulting net income comes from both circumstances, from organic farming and at the same time uses electricity for irrigation.

Income calculation

It includes all gross income, whether in cash or in kind, derived from the delivery of the products that constitute the object of the activity, as well as, where applicable, those derived from the provision of work and services accessory to the main activity, including, where applicable, self-consumption, subsidies and compensation.

When consideration is involved and it is significantly lower than the normal market value of the goods sold and the services provided, the valuation of the same shall be carried out at their normal market value.

In economic operations carried out with a company with which there are related relations, the owner of the activity must imperatively carry out its valuation at the normal market value. Normal market value shall be understood as that which would have been agreed upon by independent persons or entities under conditions of free competition.

• Consideration of compensation or output VAT amounts

  • In the case of activities included in the special regime for agriculture, livestock and fishing of the aforementioned tax, the compensation received must be included among the corresponding income derived from sales or from the provision of work or services.

  • If the activity is covered by the simplified VAT regime, the amount of the passed-on fees will not be counted as income. 

• Self-consumption: Includes both deliveries of goods and services whose destination is the personal use or consumption of the owner of the activity or the other members of his/her family unit, as well as deliveries of goods or services provided to other people free of charge. In both cases, the valuation of these operations must be carried out at the normal market value of the goods or services transferred, or those that have been the subject of self-consumption.

• Grants:

  • Capital subsidies: These are granted to promote the establishment of an activity or the realization of investments in fixed assets. They are recorded as income in proportion to the depreciation experienced in the year (amortization) by the assets financed with said subsidies. In the case of non-depreciable assets, the subsidy will be charged to the results of the year in which they are sold or written off from the inventory, with a 30% reduction applied since they are considered by regulation to be income obtained in a notoriously irregular manner over time.

  • Current grants: These are generally granted to ensure a minimum profitability or compensate for losses incurred in the activity. They are fully attributed as income in the period in which they accrue.

  • Grants awarded to finance specific expenses: They are recorded as income in the same year in which the expenses they are financing are accrued.

• Transformation, processing or manufacturing activities

  The value of natural products, whether plant or animal, used in the corresponding production process will be recorded as income, according to their market prices at the time of their incorporation into said process. Likewise, where applicable, income from self-consumption, subsidies and compensation will be included in the terms discussed below.

  If products produced in years prior to 1998 were transferred during the year, the value of the natural products used in the production process must be included as income for this year, according to their market prices at the time of their incorporation into the transformation, production or manufacturing processes.