The BOE publishes the 25% reduction in personal income tax for self-employed workers affected by DANA

The Official State Gazette (BOE) publishes this Saturday the order of the Ministry of Finance that contemplates a 25% reduction in the Personal Income Tax (IRPF) for the self-employed affected by the DANA who pay taxes through the system of self taxation.

Spanish farmers get a lifeline

The Ministry of Finance explained that this measure will allow an average saving of almost 400 euros to more than 22,600 taxpayers who pay taxes under this system, which usually includes farmers, ranchers, professionals in the agri-food sector, the transport sector and professionals in the retail trade activities.

This order maintains, as a general provision, a 5% reduction on the net performance of modules. The Treasury indicated that this is the same percentage as the last five previous years. The contributions accrued in the simplified VAT regime will also be reduced by 25%, which, according to the Spanish Ministry, will allow a saving of 92 euros on average for another 4,900 self-employed workers.

In addition, the reductions in the corrective indices that were established last year for feed purchased from third parties and for crops on irrigated land that use electrical energy are maintained. Specifically, the index applicable to livestock activities that feed livestock with feed and other products purchased from third parties is set at 0.5, provided that they represent more than 50% of the amount of food products consumed.

Super reduced rates

In addition, the Treasury pointed out that this rule allows a greater number of farms to determine their net performance according to the objective estimation method.

On the other hand, he clarified that the indices of the special simplified VAT regime that are used to calculate the annual fees accrued for current operations in 2024 of various livestock activities and the agri-food industry are reduced, in order to adjust them to the reduced rates of tax that has been applied to certain basic foodstuffs.

For the same reason, an index of quota accrued by current operations is established for the year 2025 for the activity of ‘Processes of transformation, elaboration or manufacturing of natural products to obtain olive oils’, given that this essential product of the Mediterranean diet will have a super reduced rate of 4% indefinitely.