Extension of COVID-19 tax measures

We refer to the measures announced yesterday after the Council of Ministers and published today in the BOE regarding Royal Decree-Law 8/2020, of 17 March, on urgent extraordinary measures to deal with the economic and social impact of the COVID-19.

With regard to tax measures, Article 33 of the Royal Decree-Law develops the suspension of the terms and the interruption of the administrative periods referred to in the Royal Decree declaring the state of alarm. However, these measures are not applicable to tax deadlines, which are subject to special regulations, nor do they affect the deadlines for filing tax returns and self-assessments.

Depending on whether or not the period of the tax procedure has begun at the time the rule comes into force today, we can distinguish the extension of subsequent periods:

If the deadline has not expired by the entry into force of this royal decree law (18/03/2020)

EXTENSION OF THE DEADLINE UNTIL 30/04/2020

• The tax debts resulting from settlements made by the Administration
• The payment of the tax debt once the executive period has begun and the urgent order has been notified
• The deadlines and fractions of the deferred and fractioned agreements granted
• The deadlines related to the development of the auctions and awarding of goods
• The deadlines for attending requirements, seizure proceedings and requests for information with tax implications, for making allegations in relation to the opening of such proceedings or hearings, issued in proceedings for the application of taxes, penalties or declarations of invalidity
• The return of undue income
• The rectification of material errors and revocation
• In the context of the administrative procedure of constraint, the enforcement of guarantees falling on immovable property from 18/03/2020 will not be carried out

Acts notified as of 18/03/2020:

EXTENSION OF THE DEADLINE UNTIL 20/05/2020

• The tax debts resulting from settlements made by the Administration
• The payment of tax debt once the enforcement period has begun and the enforcement order has been notified
• Maturities of instalments and fractions of instalment and deferment agreements granted
• The deadlines related to the development of the auctions and awarding of goods
• The deadlines for dealing with requests, seizure proceedings and requests for information of tax significance, for making allegations in relation to acts of opening of such proceedings or hearings, issued in proceedings for the application of taxes, penalties or declarations of invalidity

Notwithstanding the above, in the event that the taxpayer chooses to carry out the procedures indicated in response to the requirement or request for information with tax implications or submits its arguments, the procedure will be considered to have been completed.

In relation to the expiry and prescription periods – and in development of the Additional Provision Fourth Royal Decree 463/2020 of 14 March, which declares the state of alarm – the period between 18 March and 30 April 2020 will not be counted. Furthermore, the regulation establishes that in relation to appeals for reversal and in economic-administrative procedures, the resolutions that end them will be understood to have been notified when an attempt to notify the resolution is accredited between these same dates (18 March and 30 April 2020).

This same period shall also not be computed for the purposes of the maximum duration of procedures for the application of taxes, penalties and reviews processed by the AEAT. This does not prevent the Administration from promoting, ordering and carrying out the essential procedures during this period.

In turn, the calculation of the period for lodging economic-administrative appeals or claims, as well as for appealing administratively against the resolutions issued by the Economic-Administrative Tribunals, will begin on April 30, 2020 (or later if the notification is later).

Finally, and as a complementary measure to the financial measures approved, the Royal Decree-Law introduces a new exemption from the Tax on Asset Transfers and Documented Legal Acts, applicable to the gradual quota of the AJD modality for the deeds formalizing the contractual novations of loans and mortgage credits that take place under the protection of Royal Decree-Law 8/2020, of 17 March, on urgent extraordinary measures to face the economic and social impact of the COVID-19.

Other additional measures have also been approved by the AEAT so that taxpayers whose electronic certificate has expired or is about to expire can use it at the AEAT’s headquarters. In case the usual browser does not allow its use, it is recommended to move the certificate to the FireFox where you can continue using it.

For its part, the Generalitat de Catalunya today approved a second decree that complements the one approved on 12 March and which, among other measures to combat the effects of the pandemic, in the area of taxation provides for a moratorium on the deadlines for self-assessment and payment of all taxes owned and assigned by the Generalitat until the end of the state of alert.

In accordance with the above, it is important to emphasize that the suspension and interruption of administrative deadlines does not apply to the filing of state tax returns and self-assessments. This is without prejudice to the fact that small companies can apply the deferral facilities regulated in Royal Decree-Law 7/2020, which adopts urgent measures to respond to the economic impact of COVID-19.