7.4.4.7. Corrective indices

1. Use of foreign means of production in agricultural activities 

   When exclusively external means of production are used in the development of agricultural activities, without taking into account the land, and except in cases of sharecropping and similar figures, the index 0.75 will be applied.

   To apply this index, the holder must not personally work in the activity, except for tasks related to management, organization and planning; using entirely external labor.

   Furthermore, all tangible fixed assets related to the activity must be provided by third parties, excluding, along with the land, all those elements linked to the land and the exploitation with a fixed and permanent character (wells, trees, buildings).

2. Use of salaried personnel

   When the cost of salaried personnel exceeds the percentage of the total volume of income, the appropriate correction index will be applicable:

   PERCENTAGE	CONTENTS
   More than 10%	0.90
   More than 20%	0.85
   More than 30%	0.80
   More than 40%	0.75

   This correction index may not be applied when the correction index "for the use of external means of production" is applicable.

3. Crops grown on rented land

   Where crops are grown, in whole or in part, on leased land, the index 0.90 shall apply to the yields from crops on leased land.

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

4. Feed purchased from third parties in more than 50 percent

   When livestock farming activities involve feeding livestock with feed and other food products purchased from third parties that represent more than 50% of the amount consumed. The index will be 0.50. For the purposes of this index, the value of feed and other own products will be valued according to their market value.

5. For organic farming activities

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

6. For crops on irrigated land, which use electric energy for this purpose

   When the crops are carried out, in whole or in part, on irrigated land, provided that the taxpayer, or the irrigation community in which he participates, is registered in the territorial registry corresponding to the special taxes management office referred to in article 102.2 of Law 38/1992, of December 28, on Special Taxes the index will be 0.75 and will be applied to the yield from crops carried out on irrigated land with electric power.

   When it is not possible to delimit said yield, this index will be applied to the result of multiplying the yield from all crops by the percentage of the surface area of crops on irrigated land that use electric energy for this purpose over the total surface area of the agricultural holding.

   Common notes for the correction indices for organic farming activities and for crops on irrigated land that use electricity. To correctly complete these two correction indexes:

   • You must differentiate between income from your own land and income from rented land.

   • In addition, the portion of the net yield that comes from organic farming land, the portion corresponding to irrigated land using electricity, and, if both corrective indices apply to cultivated land, the portion of the yield corresponding to each type of land must be recorded separately for each type of land.

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

   The index 0.90 may be applied when the sum of the net income reduced by all the agricultural and livestock activities carried out by the same owner does not exceed 9,447.91 euros per year and there is no right to the 25% reduction of Law 19/1995, for the first installation in priority farms.

   If the reduced net income from any of the agricultural or livestock activities carried out by the taxpayer is negative, this index will be applied when the total sum is positive, but not exceeding 9,447.91 euros. In this case, the program will apply the index of 0.90 to all activities, whether they have positive or negative performance.

8. Index applicable to certain forestry activities

   When exploiting forest estates managed in accordance with technical forest management plans, forest planning, forestry plans or reforestation plans approved by the competent forestry authority, provided that the average production period, depending on the species in question, determined in each case by the competent forestry authority, is equal to or greater than twenty years, the correction index 0.80 shall be applied.

   Only this correction index may be applied to forestry activities.

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