New fiscal measures to support the economy
On April 22nd the Royal Decree Law 15/2020 of April 21st on urgent complementary measures to support the economy and employment was published in the BOE.
In this respect, we will now make a brief summary of the tax measures approved to extend those already in force as a result of the COVID-19 health crisis:
1. Corporation Tax: For the financial year 2020 and with exclusive effect for this financial year, the option to change the instalment payment system for taxpayers, depending on their turnover, is approved as follows:
- Taxpayers with a transaction volume of up to 600,000 euros and to whom the extension applies in the period for presentation and payment of declarations up to 20 May 2020: In the first declaration of the instalment payment of the financial year, they may choose to change the instalment payment method. Thus, instead of making the payment based on the last corporate income tax return filed, they may do so on the part of the taxable base for the 3, 9 and 11 month period of the year.
- Taxpayers with a volume of transactions between 600,000 and 6,000,000 euros: They may modify the option of payment by instalments and do so on the taxable base for the period of 9 and 11 months of the year by presenting the declaration of payment by instalments to be presented during the first 20 days of the month of October.
In this case, the instalment payment made in April 2020 may be deducted from the instalments made on account of the same tax period.
These measures do not apply to companies that pay taxes under the special tax consolidation regime.
2. Taxpayers under the objective estimate of income tax and the simplified VAT system: For the purposes of adapting the actual taxation to the activity carried out, they are allowed
- Fractioned payment of income tax and quarterly VAT: For the calculation of the amount to be paid, the days in alarm status will not be taken into account as days of activity. Therefore, 18 days will not be taken into account for the first quarter return.
- Waiver of the Regime of Indexes and Personal Income Tax Modules and option to pay taxes under the Direct Estimation and General VAT Regimes: This option, to be carried out when presenting Form 130 corresponding to Q1 2020, will not entail the requirement to remain under the Direct Estimation regime for 3 years. Therefore, if the Module Regime is waived now, in 2021 it could be taxed again under the same regime, as well as under the simplified VAT regime.
It should be noted that waiving the module regime in the Personal Income Tax will have the same effects on the Special VAT or IGIC Regimes of the Simplified Regime and the Special VAT Regime for agriculture, livestock and fishing.
3. VAT: The planned changes affect the elimination of taxation or reduction of the rate on the following goods:
- Healthcare material listed in the Annex to Royal Decree-Law 15/2020: Taxed at a rate of 0 percent VAT on the supply of goods, imports and intra-Community acquisitions of healthcare material carried out from 23 April to 31 July 2020, when the recipients are public law entities, clinics or hospital centres, or private social entities referred to in section three of article 20 of Law 37/1992, of 28 December, on Value Added Tax.
These transactions, which must be declared as exempt on the invoice, will not limit the right to deduct input VAT.
- Books, magazines and electronic newspapers: From 23 April, they will be taxed at the rate of 4 percent, so that their taxation is equal to that of the same products in printed format.
4. Deadlines and procedures: The tax deadlines previously extended by Article 33 of Royal Decree Law 8/2020 and in the Additional Provisions 8 and 9 of Royal Decree Law 11/2020, are moved to 30 May.
This provision will mean that the following periods and actions will be extended until 30 May:
- Payment of debts settled by the Administration, whether voluntary or compulsory, which were notified before or after 14 March. The due date will be later if so indicated in the notification.
- Expiry of the terms of the deferment agreements notified before or after 14 March. The expiry will be later only if so indicated in the notification.
- Deadlines for making allegations, attending to requirements and other communications from both the tax administration and the General Directorate of Cadastre, except when the communication expires after that date.
In addition, the following deadlines were extended:
- The period for appealing in replacement or for appealing or claiming in an economic-administrative procedure will start to run from 30 May.
- The Administration may not execute guarantees that fall on property between 14 March and 30 May.
- The period between March 14 and May 30 will not be taken into account when calculating the maximum duration of the procedures for applying taxes, penalties and reviews.
- The prescription and expiry periods are suspended between 14 March and 30 May.
- The period between 14 March and 30 May is not included in the maximum period for executing economic-administrative resolutions.
5. Revenue: The rule has provided that state tax returns submitted on time and whose deadline is between April 20 and May 30 will not enter the executive period, without making income when the following requirements are met
- The taxpayer has requested, during the voluntary period for presentation of the self-assessments, a loan guaranteed by the Ministry of Economic Affairs and Digital Transformation at least for the amount of the self-assessments and for their payment.
- Within a maximum period of 5 days from the end of the period for presentation of the self-settlement, a certificate issued by the financial institution accrediting the request must be provided to the AEAT.
- The financing granted must cover at least the amount of tax debts.
- Tax debts must be paid within a maximum period of one month from the end of the deadline for filing the self-assessment.
Self-assessment forms submitted before 23 April will still be considered voluntary if, up to 30 April (5 working days from the 23rd), the bank certificate is provided and, once the financing has been obtained, the debts are effectively paid within a maximum period of one month from the end of the deadline for submitting the self-assessment.
6. Tax debts in the port area: The Port Authorities may grant the deferral of tax debts on port fees accrued from 13 March 2020 up to and including 30 June 2020, upon application by the taxpayer. In these deferments, which can be for a maximum period of 6 months, no interest will be accrued and they must not be guaranteed.
We remain at your disposal for any clarification or additional information and for the specific analysis of the different cases that may arise.