The BOE publishes the 25% reduction in personal income tax for self-employed workers affected by dana who pay taxes by modules

This order establishes the rules for calculating the net return of economic activities that determine their net return by the objective estimation method.

The module system is applied mainly to farmers, ranchers, part of the agri-food sector, the transportation sector and retail trade activities. This order maintains, as a general provision, a 5% reduction on the net performance of modules. This is the same percentage as in 2020, 2021, 2022 and 2024.

Likewise, one of the additional provisions contemplates a 25% reduction in taxation by modules for self-employed workers affected by DANA, a measure that will allow an average saving of almost 400 euros for more than 22,600 taxpayers. The contributions accrued in the simplified VAT regime are also reduced by 25%, which will allow a saving of 92 euros on average for another 4,900 self-employed workers.

This measure is in line with two royal decree-laws, 6/2024, of November 5, and 7/2024, of November 11, in which urgent measures were adopted to respond to the damage caused by DANA in different municipalities between October 28 and November 4, 2024.

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 acquired from third parties is established at 0.5, provided that they represent more than 50% of the amount of food products consumed, and it applies to both the sectors intensive and extensive livestock farmers. The correction index for crops on irrigated land that use electrical energy is reduced to 0.75.

New VAT rate for olive oil

Furthermore, this standard allows a greater number of farms to determine their net performance according to the objective estimation method.

On the other hand, 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, to adjust them to the reduced tax rates that have been applied. to certain staple foods.

For the same reason, for the year 2025, an index of quota accrued by current operations is established 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.