Agricultural income tax implementation. A comparative analysis of the direct estimation and the objective estimation systems

摘要

Taxation of agricultural activities by the Spanish Income Tax is based on the calculation of net income. The current legislation proposes two alternatives to estimate this net income: the Direct Estimation and the Objective Estimation based on Signs, Indexes or Modules. The main objective of this paper was to analyse the difference in the fiscal treatment produced by the application of either one of these systems. The methodology developed is based on the calculation of the difference of net incomes estimated by both system. An indicator of neutrality of the Objective Estimation based on Signs, Indexes or Modules has been obtained for the different types of agricultural holdings and used to establish the convenience of applying this system in eachcase. The data for this study have been supplied by the National Farm Accountancy Data Network, taking into account the period 1994-97. Each Type of Fanning and each Economic Dimension unit has been separately analysed. The obtained data have revealed aclear protectionism in fiscal terms for the agricultural sector that usually declares the Income Tax through the special modules regime, and has shown to be, in general, more favourable to agricultural than to animal farm exploitations.