3.6.2 Calculation of net return
Net income is calculated according to the annual Order that develops this method, multiplying the amounts set for the modules by the number of units of the same used, or multiplying the total volume of income by the net income index that corresponds to agricultural, livestock and forestry activities. The deductible amount for depreciation of fixed assets results from applying the depreciation table of said Order. If the requirements are met, it will be reduced by the exercise of certain economic activities.
Calculation of net income in agricultural, livestock and forestry activities:
PHASE 1
TOTAL VOLUME OF INTEGRAL INCOME (including subsidies, compensations and aid CAP single payment)
From 2023, the rate to be applied to aid will be 0.56 when income from agricultural and livestock activities, other than aid, is less than 25% of total income. Otherwise, the aid will be added to the income from crops or farms.
(x) NET PERFORMANCE INDEX
= PREVIOUS NET YIELD
PHASE 2
(-) REDUCTION FOR ACQUISITION OF AGRICULTURAL FUEL: 35% for agricultural and livestock activities for IRPF 2022, 2023 and 2024
(-) REDUCTION FOR ACQUISITION OF FERTILIZERS: 15% for agricultural and livestock activities for IRPF 2022, 2023 and 2024
(-) AMORTIZATION OF TANGIBLE AND INVESTMENTS (excluding forestry activities)
= REDUCED NET INCOME
PHASE 3
(x) CORRECTION INDEXES (according to the type of activity and certain circumstances)
= NET YIELD OF MODULES
PHASE 4
(-) GENERAL REDUCTION: 25% for the declaration of IRPF of the fiscal year 2022, 10% for the declaration of IRPF of the fiscal year 2023 and 5% for the declaration of IRPF of the fiscal year 2024
(-) 25% REDUCTION FOR YOUNG FARMERS
(-) SPECIAL REDUCTION FOR ECONOMIC ACTIVITIES ON THE ISLAND OF LA PALMA: 20% for IRPF 2022, 2023 and 2024
(-) EXTRAORDINARY EXPENSES DUE TO EXCEPTIONAL CIRCUMSTANCES (fires, floods, subsidence, etc. communicated to the AEAT in a timely manner)
= NET INCOME FROM THE ACTIVITY
PHASE 5
(-) REDUCTION OF IRREGULAR INCOME: 30% (returns generated over more than 2 years or obtained in a notoriously irregular manner)
= REDUCED NET PERFORMANCE OF THE ACTIVITY
Calculation of net income in other activities:
PHASE 1
MODULE UNITS USED, UTILIZED OR INSTALLED
(x) ANNUAL YIELD PER MODULE UNIT (before amortization)
= PREVIOUS NET YIELD
PHASE 2
MINORATIONS:
(-) EMPLOYMENT INCENTIVES
(-) INVESTMENT INCENTIVES (amortizations)
= REDUCED NET INCOME
PHASE 3
(x) CORRECTION INDEXES (depending on the activity and certain circumstances)
= NET YIELD OF MODULES
PHASE 4
(-) GENERAL REDUCTION IN NET MODULE PERFORMANCE: 15% for the declaration of IRPF of the fiscal year 2022, 10% for the declaration of IRPF of the fiscal year 2023 and 5% for the declaration of IRPF of the fiscal year 2024
(-) SPECIAL REDUCTION FOR ECONOMIC ACTIVITIES IN LORCA: twenty %
(-) SPECIAL REDUCTION FOR ECONOMIC ACTIVITIES ON THE ISLAND OF LA PALMA: 20% for IRPF 2022, 2023 and 2024
(-) EXTRAORDINARY EXPENSES DUE TO EXCEPTIONAL CIRCUMSTANCES (Fires, floods, subsidence, etc. communicated to the AEAT in a timely manner)
(+) OTHER BUSINESS PERCEPTIONS (Subsidies and certain compensations)
= NET INCOME FROM THE ACTIVITY
PHASE 5
(-) REDUCTION OF IRREGULAR INCOME: 30% (in general, those older than 2 years and, in particular, those established by regulation)
= REDUCED NET PERFORMANCE OF THE ACTIVITY