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Practical Income Manual 2020.

Activity 8: Uses that correspond to the transferor in forestry activities carried out under a sharecropping regime

According to the provisions of the Civil Code, the sharecropping contract is governed, among other provisions, by those relating to the partnership contract. Therefore, to the extent that the transferor assumes a part of the risks and responsibilities derived from the exploitation, the tax regulations attribute to him the consideration of an agricultural entrepreneur or direct cultivator.