Corrective indices and reductions

1. Corrective indices

   The program calculates and applies the appropriate indices based on the data entered in the "additional information" section.

2. Reduction of general character

   This 5% reduction will be calculated by the program.

   The net yield of modules, thus calculated, will be taken into account for the application, where appropriate, of the reduction of Law 19/1995, of July 4, on Modernization of Agricultural Holdings (young farmers).

3. Reduction for economic activities due to damage caused by DANA

   Taxpayers who carry out economic activities on the island will be able to reduce the net income from modules corresponding to such activities by 25%.

4. Reduction for economic activities carried out on the island of La Palma

   Taxpayers who carry out economic activities on that island will be able to reduce the net income from modules corresponding to such activities by 20%.

5. Reduction for young farmers

   For the program to apply this reduction, you should have filled in YES in box " 1 Priority operating installation" of the "additional information"

6. Extraordinary expenses due to exceptional circumstances

   The amount of expenses may be recorded in order to reduce net income when the development of the activity is affected by fires, floods, subsidence or other exceptional circumstances that determine extraordinary expenses outside the normal process of carrying out the activity, provided that certain conditions are met.

7. Reduction for returns generated over more than two years or obtained in a notoriously irregular manner

   Net income with a generation period of more than two years, as well as those classified by regulations as having been obtained in a notoriously irregular manner over time, when both are attributed to a single tax period, will be reduced by 30%.

   Normally the reduction should be recorded without any sign. However, when the reduction affects a negative net return, it will be recorded preceded by the sign (-).

8. Reduction for the exercise of certain economic activities

   Taxpayers with non-exempt income of less than 12,000 euros, including income from their own economic activity, may reduce the net income from economic activities by the following amounts:

   • Taxpayers with non-exempt income equal to or less than 8,000 euros per year: 1,620 euros per year.

   • Taxpayers with non-exempt income between 8,000.01 and 12,000 euros per year: 1,620 euros – [0.405 x (Income – 8,000 euros)]

   This reduction is limited by the amount of income from the taxpayers' economic activities that generate the right to apply it.

   This reduction is unique for all economic activities carried out, regardless of the method used to determine net income. Therefore, if several activities are carried out, the amount will be distributed proportionally among all of them.