Spain - COVID-19 Tax and Labour measures




1. Fiscal and tax measures

On 18 March 2020, Royal Decree-Law 8/2020 of 17 March 2020 on extraordinary urgent measures to cope with the social and economic impact of COVID-19 (the Decree) was gazetted. For previous measures taken in relation to the Covid-19 pandemic. The Decree sets punctual reinforcement measures on health, family support, tourism, interim finance, administration and tax to help mitigate the economic effects of the coronavirus outbreak.

The Decree entered into force on 18 March 2020 and will apply for the period of 1 month, which may be extended monthly (except for those measures with a different period of application).
Meanwhile tax authorities have published provisional instructions (in Spanish) to request the deferral under the Decree. In general, when filing the tax return taxpayers should check the boxes related to deferral and payment in instalments according to the information set in the instructions. Particular attention should be paid when filing the reason for the request as it is important to include the expression "Aplazamiento RDL" while a final procedure is determined by the tax authorities.

The tax authorities have also announced that an upcoming change of regulations regarding the period applicable to tax procedures will be enacted and, while this change is approved, the period shall not be considered unfulfilled.

The Decree has established a deferral for the payment of those taxes not exceeding the amount of EUR 30,000 (i.e. the amount which permits deferral without providing a guarantee), which submission and payment period, either by assessment or selfassessment, applies from 13 March 2020 to 30 May 2020.

Only taxpayers with a turnover not exceeding EUR 6,010,121,04 in 2019 are entitled to the deferral, which may also defer payment of certain taxes ordinarily not allowed to deferral as withholding taxes, payments on account, taxes charged and CIT prepayments.

The deferral will apply for 6 months and no interest will accrue during the first 3 months of deferral.

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