Income tax will be reduced by 50% for cooperative farmers as well as for those engaged in contract farming, as provided in bill of the Ministry of Finance “Incentives for business development, through partnerships and / or corporate transformations” submitted to Parliament.
This regulation is expected to take effect from the tax year of 2022ie for the tax returns that will be made in 2023 and the producer will have to deliver 75% of its production, in quantitative level, to a cooperative body.
“The government’s goal from the first day it took office is to support producers and the primary sector,” officials at the Ministry of Rural Development and Food told the Athenian Macedonian News Agency.
As stated in the bill, the income tax exemption applies to farmers members of legal entities and associations of persons registered in the National Register of Agricultural Cooperatives and other collectives that supply the legal entity or legal entity with quantities of products equal to at least 75% of the total quantity of similar or similar products, as well as farmers who have entered into a contract with a specific company – buyer, for the purpose of contract farming, with which they undertake to contribute quantities of products equal to at least 75% of the total quantity of similar or similar products of their production.
Also, a relevant regulation determines the content of the contracts for the future sale of agricultural products between producers and buyers, ie contract farming.
Specifically, these contracts will include:
(a) the type, area cultivated and quantity of agricultural products to be sold;
(b) the minimum period of validity of the contract, which may not be less than one year, and
c) the price of the product.
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