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Practical Income Manual 2021.

Example: Determination of the net performance of the activity

Mrs. MJI has obtained in 2021 the amount of 13,800 euros in income from its agricultural holding dedicated to the production of apples, including the amount received as compensation for VAT (for the purposes of said tax is covered by the special regime for agriculture, livestock and fishing).

This amount does not include the fruit that was destined for his own family consumption, which is valued at 30 euros, nor does it include the fruit given to various friends, whose market value is 200 euros (200 kg at 1 euro/kg). In addition, in 2021 he has received 1,800 euros from an insurance company for the damage suffered to the harvest as a result of a hail storm, as well as 2,200 euros in direct aid uncoupled from the Common Agricultural Policy.

Determine the previous net performance of the activity in fiscal year 2021.


Mrs. MJI You must compute as income the sum of:

  • Apple sales: 13,800
  • Self-consumption: 30
  • Free transfers: 200
  • Compensation for apple harvest: 1,800 (*)
  • Direct help decoupled from the PAC : 2,200

Sum (13,800 + 30 + 200 + 1,800 + 2,200) = 18,030 euros

The net return rate applicable to the aforementioned income is 0.37

Previous net performance: (18,030 x 0.37) = 6,671.10 euros

Note to example:

(*) When compensation is received for the loss of farm products, its amount is in no case considered a capital gain or loss, but is computed among the full income corresponding to the type of product damaged or lost. (Back)