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V2385-20 13 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa simplificada

Decoupled CAP subsidies excluded from turnover limit for simplified direct estimation

A query was raised regarding whether Common Agricultural Policy (CAP) subsidies should be included in turnover when applying the simplified direct estimation method. The Directorate-General for Tax (DGT) has ruled that decoupled aid does not form part of said turnover.

The question raised

Whether the amount of Common Agricultural Policy subsidies forms part of the net amount of the turnover, which delimits the scope of application of the simplified direct estimation method.

The DGT's ruling

Subsidies do not constitute part of the turnover, unless they are granted based on the number of product units sold. Therefore, CAP decoupled aid (basic payment, payment for agricultural practices, payment for young farmers, or simplified scheme for small farmers) does not form part of the net amount of the turnover, although it does constitute full income from agricultural activity.

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