Überprüfung von Subunternehmern
Due to structural change, tax allocation questions arise regarding whether activities fall under income from agriculture and forestry or under income from business operations.
In recent years, a rapid technological change has taken place in agriculture and food production. Plants thrive in halls under artificial light, algae grow in tube systems, and snails and insects serve as food. The criteria for distinguishing between agriculture and forestry and business operations show that classification depends not on the product, but primarily on the form of production or the manufacturing process.
Production of Hemp and Sprouts/Microgreens
The cultivation of hemp and microgreens (small vegetable plants) is classified under horticulture, and the profits generated therefore count as income from agriculture and forestry. If these plants are grown in a greenhouse, profit determination can be carried out - under the appropriate conditions - according to the horticultural full flat-rate assessment. However, if these plants are grown in buildings and therefore "indoors," only the horticultural partial flat-rate assessment can be claimed. In this case, 70% of the business income (including VAT) is set as operating expenses. Wages and ancillary wage costs can additionally be claimed as business expenses.
Algae Production
Algae are increasingly used in the food, feed, and cosmetics industries. For tax purposes, a distinction must be made between two forms of production: Open-pond systems, such as water basins in plastic tunnels, belong to income from agriculture and forestry. For this form of production, a flat-rate can be claimed. Closed systems (photobioreactors), on the other hand, are classified under income from business operations. They do not represent a secondary operation in the sense of the flat-rate ordinance.
Snail Farming
The breeding of snails and edible insects can be classified under agriculture for tax purposes, provided that predominantly farm-owned feed is used. The assessment also depends on the valuation law, whereby it is crucial whether the utilized assets are agricultural and forestry assets. These forms of breeding are considered "other agricultural and forestry assets" since they often occur independently of land use, similar to beekeeping or fish farming.
Mushroom Farming
The cultivation of mushrooms is fundamentally agricultural, provided that no laboratory-like conditions are present. If the cultivation, for example, takes place in halls with artificially created conditions and technical standardization, the activity is considered commercial.
Conclusion
The criteria for delineation show that classification depends not on the product, but primarily on the form of production or the manufacturing process. If the production occurs under laboratory-like conditions (technically standardized processes that no longer differ from commercial production, e.g., in the context of biotechnology), then income from business operations is usually generated. Conversely, income from agriculture and forestry is present if natural forces are not effective under laboratory-like conditions during the production process.
In the specific case, it is therefore necessary to clarify in advance which type of income an activity falls under to ensure correct profit determination and to avoid subsequent discussions with the tax office, e.g., in the context of an external audit. We therefore recommend early consultation.
