EFAC Intranet

Payment Entitlements TAX Aspects

On 26 June 2003 the European ministers of agriculture reached an agreement on the reform of the
Common Agricultural Policy (The CAP). The main principle of the reform is that the income support
farmers have received so far, is being replaced by one support system of payment entitlements and that
the support system is decoupled form the actual production.

On December 17, 2013, the Ministers of Agriculture of the European Union reached an agreement on
the further reform of the CAP.

The special conditions prevailing at payment will thus be completely replaced. In this way, wants to
ensure that companies are more innovative, better focus on the market and become less dependent on
income support.

In 2015, the countries being represented in EFAC give an overview of the tax aspects of the payment
entitlements and the annual payments resulting from the payment entitlements.

Download full document: Payment Entitlements – April 2015 – V1