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V1919-20 12 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Net yield indices applied based on the municipality where grape cultivation takes place

A taxpayer inquired which net yield indices should be applied under the objective estimation regime for grape production with Protected Designation of Origin (PDO) across two different municipalities. The Directorate-General for Taxes (DGT) ruled that the index corresponding to the specific municipality where each part of the activity is carried out must be applied.

The question raised

Net yield indices applicable to the production of grapes with D.O. in 2019.

The DGT's ruling

The net yield indices for agricultural and livestock activities under the objective estimation method are those set forth in the Order developing the method for each year. In the event of an index reduction due to exceptional circumstances, the indices contained in the reduction Order shall be applied according to the territorial scope. The applicable index depends on the municipality where the cultivation takes place, without the tax domicile of the holder being a factor. If the activity is carried out in several municipalities, the income must be separated by municipality and the corresponding index must be applied to each one.

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