Phase 4: Determination of the net performance of the activity
In accordance with the regulations governing the objective estimation method, contained in Annex I and in the first Additional Provision of Order HAC /1155/2020, of November 25 ( BOE of December 4), to determine the net income of the activity, the following reductions may be made:
1. General reduction: 20 percent
Regulations: First Additional Provision of Order HAC /1155/2020, of November 25 ( BOE of December 4) and article 4 of Real Decree-Law 4/2022, of March 15, which adopts urgent measures to support the agricultural sector due to the drought ( BOE of 16)
For 2021, the net yield of modules of agricultural, livestock and forestry activities, as well as transformation processes, determined in accordance with what was discussed in phase 3 above, may be reduced by a percentage of 20 percent ##1 .
Note: Article 4 of Royal Decree-Law 4/2022, of March 15, which adopts urgent measures to support the agricultural sector due to the drought ( BOE of 16) has raised from 5 to 20 percent the reduction provided for in the first Additional Provision of Order HAC/1155/2020, of November 25, which develops for the year 2021 for agricultural, livestock and forestry activities included in the annex I of the aforementioned Order.
2. Young farmers reduction: 25 percent
In accordance with the provisions of the sixth Additional Provision of the Personal Income Tax Law and point 3 of the instructions for the application of signs, indices or modules in IRPF of Annex I of Order HAC /1155/2020, of November 25 ( BOE of December 4), Young farmers (over 18 years of age and under 40 years of age) or agricultural employees may reduce the net yield of modules, resulting after applying the general reduction, by 25 percent in each of the tax periods closed during the five years following their first installation as owners of a holding that has a priority status, carried out under the provisions of Chapter IV of Title I of Law 19/1995, of July 4, on the Modernization of Agricultural Holdings , provided they prove the completion of a plan to improve the operation.
For these purposes, the status of priority exploitation must be accredited by certification issued by the corresponding body of the Autonomous Community, or by inclusion in the General Catalog of Priority Exploitations of the Ministry of Agriculture, Fisheries and Food.
See Royal Decree 613/2001, of June 8, on the improvement and modernization of the production structures of agricultural holdings ( BOE of 9).
3. Extraordinary expenses due to exceptional circumstances
Regulations: See Annex III of Order HAC / 1155/2020, of November 25 ( BOE of December 4)
When the development of the activity has been affected by fires, floods, subsidence or other exceptional circumstances that have led to extraordinary expenses unrelated to the normal process of the exercise of the activity, the interested parties may reduce the resulting net return by the amount of said expenses. To do this, taxpayers must have brought this circumstance to the attention of the Administration or, failing that, the Tax Agency Delegation, within a period of 30 days from the date on which it occurs, providing for this purpose the corresponding justification and mentioning, where appropriate, the compensation to be received due to such alterations, so that the Tax Administration verifies the certainty of the cause that motivates the reduction in performance and the amount thereof.
See in this regard Royal Decree-Laws 10/2021, of May 18, which adopts urgent measures to alleviate the damage caused by the storm "Filomena" (BOE of 19) and 20/2021, of October 5, by which urgent support measures are adopted for the repair of damage caused by volcanic eruptions and for the economic and social reconstruction of the island of La Palma ( BOE of 6).