Fiscal measures to support the tourist sector, the hostelry industry and commerce included in RDL 35/2020 are approved. These are a series of measures in the area of taxation, focused especially on sectors that are vulnerable due to Covid-19, such as tourism, hostelry and commerce.
Tax measures to support the tourist sector
We can highlight the following:
Tax debt deferment
The deferment of the income of the tax debts of the declarations, liquidations and self-assessments will be granted. Whose presentation and payment period ends between April 1st and 30th, 2021. It shall also apply to the obligations to withhold and make payments on account. To the taxes that must be legally charged and to the fractioned payments of the Corporation Tax.
- The period granted will be 6 months.
- No interest on arrears will be accrued during the first 3 months of the deferment.
- It shall be a requirement for the granting of the deferment that the debtor is a person or entity with a volume of transactions not exceeding 6,010,121.04€ in the year 2020.
Tax measures to support the tourism sector regarding Personal Income Tax (IRPF)
Personal Income Tax (IRPF). Tax incentive for the reduction of income from the rental of premises.
With effect from January 1, 2021, landlords who rent premises where certain economic activities in the tourism, hostelry and commercial sectors are carried out, and who voluntarily agree to reduce their rent for the months of January, February and March 2021, may deduct as an expense from their personal income tax the amount of the reduction in rent agreed during such months, provided that it is not offset in the following months.
It does not apply to a company or public entity, nor to a “large holder”. Owner of more than 10 urban properties excluding garages and storage rooms. Or a built area of more than 1,500 m2. Nor when the tenants are a person or entity related to the landlord.
Personal Income Tax (IRPF). Companies and Non-Residents. Doubtful collection credits.
Individuals and small entities may deduct the losses due to the deterioration of the credits derived from the possible insolvency of debtors. Provided that 3 months (before 6) have elapsed between the expiry of the obligation and the accrual of the tax.
Individuals may include in their personal income tax as a deductible expense in their Real Estate Income the balances of doubtful collection when 3 months (before 6) have elapsed since the first collection management.
Personal Income Tax (IRPF). Objective estimation (Modules): Reduction 20%
The percentage reduction to be applied to the net yield calculated by the objective estimation method is increased from 5% to 20% in the income tax for the year 2020.
For activities linked to the tourism sector, hostelry and commerce, the reduction will be 35%. Including the urban public and road passenger transport sector.
These new reductions will be taken into account when calculating the fourth instalment for 2020. And for calculating the first instalment for 2021.
Personal Income Tax (IRPF). Objective estimate (modules). Waiver without linkage and Deadlines.
If the objective estimation method is waived, it will no longer be binding for 3 years. Thus, taxpayers who waived the method by 2020 may reapply it in 2021 or 2022. And the waiver of modules for 2021 will not prevent the application of the method again in 2022.
In addition, the period for waiver or revocation of the same is extended, ending on January 31, 2021. The waiver may also be revoked by filing the declaration of payment in installments for the first quarter of fiscal year 2021 or 2022, as applicable. In the form provided for the objective estimation method (form 131).
Tax measures to support the tourist sector regarding VAT
VAT Simplified system: 20% reduction
The annual quota accrued for current operations under the simplified system will be reduced by 20% in 2020. This will be 35% for activities related to the tourism sector, hostelry and restaurants and commerce included in the RD. These reductions will be applied in the calculation of the first quarterly payment for 2021
VAT Simplified system, Agriculture, Livestock and Fisheries. Waiver without bonding and Deadlines
The mandatory 3-year link established for the waiver of the simplified VAT regime is eliminated. It can be applied again in 2022. Those who renounce in 2020 will be able to apply the method again in 2021 or 2022.
In addition, a new deadline is set for submitting the waiver or revocation of the special simplified VAT regimes. As well as agriculture, livestock and fisheries. Which will end on January 31st, 2021.
VAT 0% tax rate
A rate of 0% will be applied to deliveries, imports and intra-community acquisitions of the following goods and services necessary to combat the effects of Covid-19 from 24-12-2020 to 31-12-2022:
- In vitro diagnostic medical devices from Covid-19
- Deliveries of Covid-19 vaccines authorized by the European Commission.
- The provision of transport, storage and distribution services related to deliveries, imports and intra-community acquisitions, as provided for in the previous points.
These operations will be documented in the invoice as exempt operations, as well as for the purposes of the special regime of the surcharge of equivalence
The equity surcharge rate applicable, in that period, for these same goods, will be 0%.