Introduction: scheme

Regulations: See Annex I and the instructions for the application of signs, indices or modules in Personal Income Tax contained therein in Order HAC /1155 /2020, of November 25 ( BOE of December 4).

The net return is the result of the sum of the net returns corresponding to each of the agricultural, livestock and forestry activities developed by the taxpayer.

The net return corresponding to each activity must be obtained by successively carrying out the operations that are schematically indicated below:

Phase 1

FULL INCOME (including subsidies, compensation and lump-sum PAC assistance)

(×) NET RETURN INDEX

(*) When the recipient of direct CAP single payment aid has not obtained income from agricultural or livestock activities, the net return index to be applied is 0.56.

= PREVIOUS NET PERFORMANCE

Phase 2

(-) AMORTIZATION OF MATERIAL AND INTANGIBLE ASSETS (excluding forestry activities)

= MINORIZED NET INCOME

Phase 3

(×) CORRECTIVE INDICES (depending on the type of activity and certain circumstances)

= NET PERFORMANCE OF MODULES

Phase 4

(-) GENERAL REDUCTION: 20 PER 100

(-) REDUCTION FOR YOUNG FARMERS: 25 PER 100

(-) EXTRAORDINARY EXPENSES DUE TO EXCEPTIONAL CIRCUMSTANCES (fires, floods, sinkholes, etc., communicated to the AEAT in a timely manner)

= NET ACTIVITY RETURN

Phase 5

(-) REDUCTION DUE TO IRREGULARITY: 30 PER 100 (Reductions in income generated in more than 2 years or obtained in a notoriously irregular manner)

= REDUCED NET RETURN FROM THE ACTIVITY