Doctrine by topic · DGT Observatory

Livestock Activity: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Stable position Medium confidence 30 rulings · 2014–2025

Current position

Livestock intended for breeding or milk production is considered a depreciable tangible asset, and its depreciation is a deductible expense. The depreciation base must be its production cost, which is determined by adding raw materials to the attributable direct and indirect costs. This production cost is computed as activity income for the calculation of the result.

The DGT's position on livestock activity is heterogeneous due to the diversity of queries received. There is no single doctrinal evolution, as the criteria address different aspects: classification of the IAE (Economic Activities Tax), the legal personality of civil societies, VAT exemptions on leases, and the deductibility of production costs.

Turning points

  1. V3328-14

    Establishes that the incubation and sale of chicks is not laying poultry farming, but an independent industrial activity under heading 413.4 of the IAE.

  2. V2394-16

    Specifies that the leasing of real estate constructions for livestock farming, independent of the exploitation of the land, does not enjoy the VAT exemption.

  3. V0612-25

    Defines that breeding or milk livestock is a depreciable asset and that its depreciation base is the production cost.

Analysis based on 29 of 30 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0612-25 1 Apr 2025

Livestock for breeding or milk production is tangible depreciable asset

SG de Impuestos sobre la Renta de las Personas Físicas
inmovilizado materialcoste de producciónamortizaciónrendimiento netoactividad ganadera LIRPF — Ley 35/2006 del IRPF art. 28.1LIRPF — Ley 35/2006 del IRPF art. 30
Affects CompanyExpat · Non-residentIndividual
V2743-21 10 Nov 2021

Fruit farming course not considered agricultural activity for 2% retention

SG de Impuestos sobre la Renta de las Personas Físicas
obligación de retenerrendimientos de actividades agrícolasretención a cuentaactividad ganaderaingreso a cuenta RIRPF — RD 439/2007, Reglamento del IRPF art. 74RIRPF — RD 439/2007, Reglamento del IRPF art. 75
Affects CompanyExpat · Non-residentIndividual
V4793-16 10 Nov 2016

Civil societies engaged in livestock farming are not subject to Corporate Tax

SG de Impuestos sobre las Personas Jurídicas
sociedad civilobjeto mercantilatribución de rentaspersonalidad jurídicaactividad ganadera LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.aLIRPF — Ley 35/2006 del IRPF art. Título X, Sección 2ª
Affects CompanyExpat · Non-residentIndividual
V4423-16 17 Oct 2016

Partnerships engaged in livestock farming are not subject to Corporation Tax

SG de Impuestos sobre las Personas Jurídicas
sociedad civilobjeto mercantilatribución de rentaspersonalidad jurídicacomunidad de bienes LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 6.1
Affects CompanyExpat · Non-residentIndividual
V4413-16 14 Oct 2016

Partnerships engaged in livestock farming are not subject to Corporation Tax

SG de Impuestos sobre las Personas Jurídicas
sociedad civilobjeto mercantilpersonalidad jurídicaatribución de rentascomunidad de bienes LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 6.1
Affects CompanyExpat · Non-residentIndividual
V3000-16 28 Jun 2016

Partnerships engaged in livestock farming are not subject to Corporation Tax

SG de Impuestos sobre las Personas Jurídicas
sociedad civilobjeto mercantilatribución de rentaspersonalidad jurídicacomunidad de bienes LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 6LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.a
Affects CompanyExpat · Non-residentIndividual
V2090-16 13 May 2016

Civil societies engaged in livestock farming are not subject to Corporate Tax

SG de Impuestos sobre las Personas Jurídicas
sociedad civilobjeto mercantilatribución de rentaspersonalidad jurídicaactividad ganadera LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 6LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7.1.a
Affects CompanyExpat · Non-residentIndividual

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