We summarize the Spanish Government Actions for the Coronavirus Crisis. On March 14th, the BOE published the RD 463/2020 of March 14th by which the State of Alarm was decreed.
Spanish Government Actions for the Coronavirus Crisis
With respect to the tax area, the suspension of terms and interruption of administrative deadlines and the suspension of prescription and expiration deadlines were included. During the entire period of validity of the state of alert,
In addition, and pending the development and implementation of these and other definitive measures, the following tax measures published on March 13th in the Official State Gazette (BOE), contained in Royal Decree 7/2020, are currently applicable:
Royal Decree 7/2020 on Extraordinary Actions
In the tax field, Article 14 of the aforementioned Royal Decree-Law provides for a measure to make tax debt deferrals more flexible. Applicable only to SMEs and the self-employed:
- A six-month deferral will be granted without accruing interest. During the first 3 months, of the income of the tax debt corresponding to the declarations-settlements and self-assessments whose term of presentation and income ends between the 13th of March and the 30th of May 2020, both inclusive.
- Debts not exceeding 30,000€ may be deferred, without the need to provide guarantees.
- The debtor must be a person or entity with a volume of operations not exceeding 6,010,121.04€ in 2019.
This measure will also be applicable to the following tax debts
- Tax obligations to be met by the withholder or the person obliged to make payments on account.
- Those derived from taxes that must be legally passed on. Unless it is duly justified that the payments on account have not been effectively paid.
- Tax obligations to be met by the person liable to make payments in instalments of Corporation Tax.
Consequently, unless dates different from those currently established for filing returns and self-assessments are approved, this measure will mainly affect the returns for the first quarter and the monthly returns for February, March and April. It may also affect the IS returns and self-assessments of taxpayers whose fiscal year end does not coincide with the calendar year
Procedure for requesting a postponement
The AEAT (State Agency of Tax Administration) has published on its website provisional instructions for applying this measure of flexible deferrals. The procedure would be:
- Submit the usual procedure for the self-assessment in which the amount to be paid that the taxpayer wants to postpone appears. Marking as with any deferment the option of “acknowledgement of debt”.
- Access the procedure “Submit request”, within the deferral section of the AEAT’s electronic headquarters, at the following link
- Fill in the fields of the application.
- Important: check the box “Application under Royal Decree Law 7/2020 of 12 March, adopting urgent measures to respond to the economic impact of COVID-19.
- In the Payment Proposal section. The following message should appear: “Request under Royal Decree Law 7/2020, of 12 March, adopting urgent measures to respond to the economic impact of COVID-19.
- In addition, the following fields must be specially filled in:
- “Type of guarantees provided”: tick the option “Exemption”.
- “Proposal of deadlines; no. of deadlines”: tick the number “1”.
- “Periodicity”: tick the option “Not applicable”.
- “Date first period”: incorporate the date corresponding to a period of six months from the end of the ordinary period for presentation of the self-assessment. For example, for VAT self-assessment MOD 303 of February, which expires on 30 March, the date to be included would be 30-09-2020.
- Important: In the field “Reason for the request” you must include the expression “Deferral RDL”.
Once signed and sent, this message will appear:
Your postponement request has been correctly registered in the system on day X at X hours, having selected the option “Request under Royal Decree-Law 7/2020, of 12 March, adopting urgent measures to respond to the economic impact of COVID-19”.
We will continue informing you of the economic measures that will be announced by the Spanish Government and other regional and local administrations.
For any consultation or procedure, please do not hesitate to contact our Tax Consulting Department.
Arrabe Integra
Tax Consulting