Agricultural income from land represents remuneration for the work involved in organizing agricultural activities and for the capital employed, and is attributed to the person who carries out agricultural activities on the land, including on the basis of a personal right of use (lease). The legislator (Article 32 of the TUIR, as reformulated by Legislative Decree No. 192/2024 implementing the last Italian tax delegation) considers, from the many, as agricultural activities generating agricultural income also the activities “aimed at cultivating the land […] [and] referred to in Article 2135, paragraph 3, of the Italian Civil Code, aimed at the handling, storage, processing, marketing and promotion of products obtained mainly from the cultivation of land or forests or from animal husbandry”. It means that products (and the activities connected with) came from the cultivation of land or from animal husbandry are subjected to agricultural taxation. The tax rate applied to agricultural income is the same of the others income9, but the first is subjected to specific (and different) rules for the determination of the tax basis that make the agricultural land income in a different position compared to others income, based to the fact that the first one is taxed on a flat rate basis, instead of the others income (especially business income) which are analytically taxed. In fact, agricultural land, in Italian income framework, is taxes not with ordinary criteria generally utilized for the analytical determination of the business income, but is based on the real estate property cadastral, with a simplified model based on average income taxation and which does not require assessment of the positive or negative components and it is not take in account the effective income produced. So, income from agriculture and forestry is defined as income from real estate properties and determined by registered assigned yields (cadastral basis) and not on the basis of actual yields or income generated. Yields in the land register are estimated as average values of land and buildings and are very low. This results in a preferential tax treatment of agriculture and forestry. 2.2. VAT in Agricultura land VAT in agricultural land is ruled by Article 34 of President of the Republic Decree no. 633 of October 26th, 1972 (with which Italy transposed the Directive), which is dedicated to disciple agricultural enterprises. This provision allows to enterprises to choose either an ordinary tax scheme (with a relative 9 The others income are from: capital investments; wages and salaries; professional and independent personal services; trade and industry; other sources. 527 THE TAX REGIME OF GASTRONOMY
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