Creation of the precautionary savings deduction for farmers

Article 51 of the 2019 Finance Act replaces the investment deduction (DPI) and the contingency deduction (DPA) with a precautionary savings deduction (Art. 73 of the General Tax Code). Farmers taxed under the actual-profit regime may deduct up to 100% of profit below €27,000, then on a sliding scale, up to €41,400 per financial year and an overall cap of €150,000 of deductions not yet reinstated (multiplied by the number of farming partners, up to four, for GAEC and EARL), provided equivalent savings are placed in a current account. Applicable to financial years ending between 1 January 2019 and 31 December 2022, then extended by later finance acts (to financial years ending on 31 December 2028 according to the BOFiP).