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V0606-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Maintaining objective estimation for IRPF and special agricultural VAT regime after leasing or transferring part of a farm

A farmer has enquired whether they can continue to pay tax under the objective estimation method for IRPF and the special agricultural regime for VAT if they lease or transfer part of their farm to their son. The DGT has ruled that both regimes may be maintained provided that the mutually exclusive thresholds are respected and the activities are distinct.

The question raised

1: Whether the taxpayer could continue to determine the net income using the objective estimation method.

The DGT's ruling

In Personal Income Tax (IRPF), the taxpayer may continue to apply the objective estimation method for both their agricultural activity and the income derived from a lease or sharecropping arrangement, provided that the exclusionary thresholds are met. Regarding VAT, agricultural activity constitutes a separate sector from leasing or sharecropping. If it is a lease, the transaction shall be subject to VAT but exempt. If it is sharecropping, the exploitation activity also falls under the simplified special regime, provided that this regime is not waived.

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