Medidas fiscales empresas COVID 19

TAX MEASURES FOR COMPANIES DURING THE STATE OF ALARM

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Since the State of Alarm was declared in Spain, we have maintained a positive attitude in our Law Firm.

We stay at home, coming to terms with our new responsibilities and taking care of ourselves. However, needless to say, we keep working and leading our companies in all the different areas we are involved in.

Are you worried? It’s normal and understandable, we all are coming to terms with the present situation.

While it is true that the Spanish economy will be affected, we are convinced that as in every crisis we can reinvent ourselves and create new opportunities. Our lives have already changed, and we cannot become stagnate, come to a standby or put our lives on hold.

For the time being, and with the aim of mitigating the economic effects caused by the COVID-19, the Spanish Government has adopted some measures in the fields of taxation and tax for companies and self-employed workers.

It is of these measures that we wish to inform you about in this post.

 The main tax and fiscal measures approved as of April 15th are as follows:

  • Suspension of tax deadlines.
  • Tax debt deferral for up to 6 months
  • Extension of the deadline to present and pay taxes until May 20th.

However, we wish to reiterate that we are at your disposal if you wish to  contact us and send us your queries. 

 What are the main tax measures for companies which have been approved today?

To date, three important measures have been approved at the fiscal and tax level:

 Suspension of tax deadlines: The following tax deadlines have been suspended:

  1. Deadlines for the payment of tax debts:
  • Those resulting from settlements made by the Administration.
  • Those resulting once the executive period has begun and the injunction has been notified.
  1. The expiration of the terms and fractions of the agreements of postponement and fractioning granted.
  1. The deadlines related to the development of the auctions and awarding of goods.
  2. The deadlines for dealing with requests, seizure proceedings and requests for information with tax implications which have not been completed by 18 March.
  3. And the deadlines for attending to the requirements and requests for information made by the General Directorate of Catastre.

The deadlines indicated will be extended:

  • Until 30th April 2020 for those deadlines not completed by 18th March.
  • Until 20th May 2020 for those informed of after the entry into force of this measure.

 Deferral of tax debts up to 6 months:

 Deferral of tax debts without the need for guarantees is permitted up to 30,000 euros (as always).

This postponement may be requested for:

  • VAT
  • Income Tax
  • Payments on account of Corporate Tax.

 You can request a deferment of up to 6 months, with no interest accrued on the first three months.

 The requirement for granting the deferral is that your trading volume does not exceed 6.010.121,04 euros in the 2019 financial year.

Extension of the deadline for submitting and paying taxes:

The deadline for submitting taxes for the first quarter of 2020 has been extended to May 20.

This extension affects all tax returns (including informative ones) and self-assessments for which the deadline for submission is between 15th April and 20th May 2020.

In other words, VAT, personal income tax and corporation tax may be filed before 20th May instead of 20th April this being the usual date for presenting the necessary documents.

 If the chosen form of payment is by direct debit, the deadline is 15th May. This measure is compatible with the request for a 6-month deferment of payment, with no interest accruing for the first 3 months.

Therefore, the taxes corresponding to the first quarter of 2020 may be presented until 20th May 2020 and request the deferment of their payment, for a single fee, until 20th November.

However, the possibility of delaying the presentation and entry until May 20th will not be applicable to:

  1. Companies with a turnover of more than 600,000 euros in 2019.
  2. Tax groups under the consolidated corporate tax regime (regardless of the net turnover)
  3. Groups of entities that pay tax under the special regime for groups of entities for Value Added Tax (regardless of the net turnover)
  4. Nor does it apply to customs declarations.

Although we are aware that these measures are not very far-reaching, however they do provide a small breath of fresh air for SMEs and the self-employed. The aim must always be to keep the economy moving.

Only with dedication and commitment on all fronts can we get out of this with a healthy and a less damaged economy.

 Until next week.

 

 

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