Example: Determination of the previous net performance of the activity

Mrs. MJI In 2025, he obtained €13,800 in income from his agricultural holding dedicated to apple production, including the amount received as compensation for IVAABBR (for the purposes of this tax it is covered by the special regime for agriculture, livestock and fishing).

This amount does not include the fruit that he intended for his own family consumption, which is valued at 30 euros, nor the fruit he gave to various friends, whose market value is 200 euros (200 kg at 1 euro/kg). In addition, in 2025 he received 1,800 euros from an insurance company for damages suffered to the harvest as a result of a hailstorm, as well as 2,200 euros in direct aid decoupled from the Common Agricultural Policy.

Determine the net prior performance of the activity in the 2025 financial year.

Solution:

Mrs. MJI must compute as income the sum of:

• Selling apples: 13.800
• Self-consumption: 30
• Free transfers: 200
• Compensation for apple harvest: 1,800 ^(*)
• Direct aid decoupled from the CAP : 2,200^(**)

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

The net return index applicable to the aforementioned income is 0.37

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

Note to example:

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

^(**) In this case, the net rate of return of 0.56 is not applied to the direct aid decoupled from the CAP received, given that the total income from agricultural and livestock activities, other than direct aid, obtained by the taxpayer is not less than 25% of the total amount of income from such activities. Therefore, the amount of direct aid received is added to the income from the different crops and farms.^(Back)