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), the following reductions may be made to determine the net income of the activity:

1. General reduction: 20 per 100

Regulations: First Additional Provision of Order HAC /1155/2020, of November 25 ( BOE of December 4) and article 4 of Royal Decree-Law 4/2022, of March 15, by which urgent measures are adopted to support the agricultural sector due to drought ( BOE of the 16th)

For 2021, the net yield of modules from agricultural, livestock and forestry activities, as well as from transformation processes, determined in accordance with the above phase 3, may be reduced by 20% .

Note: Article 4 of Royal Decree-Law 4/2022, of March 15, which adopts urgent measures to support the agricultural sector due to drought ( BOE of the 16th) has raised from 5 to 20 percent the reduction provided for in the First Additional Provision of Order HAC/1155/2020, of November 25, by which the agricultural, livestock and forestry activities included in Annex I of the aforementioned Order are developed for the year 2021.

2. Reduction of young farmers: 25 percent

In accordance with the provisions of the sixth Additional Provision of the Personal Income Tax Law and in point 3 of the instructions for the application of the signs, indexes or modules in the Personal Income Tax 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 income from modules, which results after applying the general reduction, by 25% in each of the tax periods closed during the five years following their first installation as owners of a farm that has a priority character, carried out under the provisions of Chapter IV of Title I of Law 19/1995, of July 4, on Modernization of Agricultural holdings, provided that they prove that they have carried out a plan to improve the holding.

For these purposes, the priority farm status must be accredited by a certificate issued by the corresponding body of the Autonomous Community, or by inclusion in the General Catalogue of Priority Farms 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 the 9th).

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 determined extraordinary expenses outside the normal process of carrying out the activity, the interested parties may reduce the resulting net income by the amount of said expenses. To do so, taxpayers must have informed the Administration or, failing that, the Tax Agency Delegation, of this circumstance within 30 days from the date on which it occurs, providing the corresponding justification for this purpose and mentioning, where appropriate, the compensation to be received due to such alterations, so that the Tax Administration can verify the certainty of the cause that motivates the reduction in income and the amount thereof.

See in this regard Royal Decree-Laws 10/2021, of May 18, adopting urgent measures to alleviate the damage caused by the storm "Filomena" (BOE of the 19th) and 20/2021, of October 5, adopting urgent support measures for the repair of the damage caused by volcanic eruptions and for the economic and social reconstruction of the island of La Palma ( BOE of the 6th).