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 HFP /1359/2023, of December 19 ( BOE of December 21), the following reductions may be made to determine the net income of the activity:
1. General reduction: 5 per 100
Regulations: Additional Provision First Order HFP /1359/2023, of December 19 ( BOE of December 21) .
By 2024, the net yield of modules from agricultural, livestock and forestry activities, as well as from transformation processes, determined in accordance with the comments made in phase 3 above, may be reduced by a percentage of 5 percent .
Note: the First Additional Provision of Order HFP /1359/2023, of December 19, which develops the objective estimation method of IRPF for the year 2024, has reduced from 15 to 5 percent the general reduction applicable to the net performance of modules obtained in the tax period 2024 provided for in article 2 of Order HAC /348/2024, of April 17, which modifies for the tax period 2023 the net performance indices and the general reduction applicable in the objective estimation method of the Personal Income Tax for agricultural and livestock activities affected by various exceptional circumstances.
2. Reduction for economic activities due to damage caused by DANA: 25 percent
Regulations: art. 11 Royal Decree-Law 7/2024, of November 11 ( BOE of November 12) and Additional Provision Fifth Order HAC /1347/2024, of November 28
After applying the general reduction of 5%, those taxpayers who carry out their economic activity in the municipal areas mentioned in the annex of Royal Decree-Law 6/2024, of November 5, which adopts urgent response measures to the damage caused by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024, and determine the net income of said activity by the objective estimation method, may reduce the net income of 2024 modules corresponding to such activities by 25%.
The reduction must be entered in box [0162] of the declaration.
See in this regard the summary table contained in Chapter 2.
Note: Due to the consequences of the damage caused by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024, article 11 of Royal Decree-Law 7/2024, of November 11, which adopts urgent measures to promote the Immediate Response, Reconstruction and Relaunch Plan against the damage caused by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024 ( BOE of November 12) , has established for the economic activities carried out in said municipalities, detailed in the Annex of Royal Decree-Law 6/2024, a special reduction, similar to those established for the municipality of Lorca due to the earthquake that occurred in said municipality, and for the island of La Palma after the volcanic eruption of Old Summit .
3. Reduction for economic activities carried out on the Island of La Palma: 20 per 100
Regulations: Additional Provision Sixth Order HFP /1359/2023, of December 19 ( BOE of December 21)
For those taxpayers who carry out their economic activity on the island of La Palma and determine the net income from said activity using the objective estimation method, the net income from modules for 2024 corresponding to such activities may be reduced by 20%.
The reduction must be entered in box [0160] of the declaration.
Attention: Due to the consequences of the volcanic eruptions that occurred on the island of La Palma, the special reduction, which was already applied in 2022 and 2023, for economic activities carried out on said island similar to that established for the municipality of Lorca, due to the earthquake that occurred in said municipality, is maintained by the sixth Additional Provision 1## of Order ##2## /1359/2023, of December 19, by which the objective estimation method is developed for the year 2024.
4. Reduction of young farmers: 25 percent
Regulations: Sixth Additional Provision of Law Personal Income Tax and instruction 3 of Annex I Order HFP /1359/2023, of December 19 ( BOE of December 21)
Young farmers (over 18 and under 40) or agricultural wage earners may reduce the net module yield resulting from 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 with 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 that they prove the implementation of a plan to improve the farm.
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 June 9).
5. Extraordinary expenses due to exceptional circumstances
Regulations: See common rule 2 of Annex III Order HFP /1359/2023, of December 19 ( BOE of December 21)
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.