Tax measures of RDL 15/2020 of support to the economy and employment

The tax measures of RDL 15/2020 were published in the BOE yesterday, Wednesday 22nd April. They came into force on the same day. In this Royal Decree-Law, the Government adopts new measures that have an impact on tax matters.

Tax measures of RDL 15/2020

The following are the different measures announced

Measures in the field of VAT

There are two measures introduced by this new Royal Decree-Law in the field of VAT:

Between 23 April and 31 July 2020, a VAT rate of 0% will be applied to the supply, import or intra-Community acquisition of sanitary materials. Such as respirators, masks or gloves, whose recipients are public law entities, clinics or hospital centres, or private entities of a social nature. For invoicing purposes, these operations shall be documented as exempt invoices. Although they will not give rise to limitations on the right to deduct input VAT for suppliers of these. Therefore, the issue of these exempt invoices will not determine the pro rata entry for VAT purposes.
Additionally, and also from 23 April, the VAT rate applicable to books, newspapers and digital magazines is reduced to 4%.

Measures in the field of corporate income tax

All taxpayers liable for corporate income tax are obliged to make advance payments of this tax in April, October and December each year. Depending on the case, the amount of the instalment payment may be calculated from the last income tax payment submitted. Or from the actual result of the current year up to the month prior to making the instalment payment.

The RDL enables companies that calculate their instalment payments on the basis of the last income tax payment submitted to opt to apply the calculation method based on actual results for the current year in 2020. To this end:

Those companies with a turnover of less than 600,000€ and whose fiscal year began on January 1. They can apply this change already in the first instalment payment of the year 2020. As a result of the measures adopted during the state of alert, the deadline for submitting this instalment has been extended to 20 May 2020. Model 202.
Those companies with a turnover of more than 600,000€ but less than 6,000,000€. Whose tax period began on or after January 1. As they have not been able to take advantage of the extension of the period for presentation of the first instalment, they will exercise the option in the second instalment. To be submitted between 1 and 20 October 2020.

Clarification

The way to exercise this option for the change of mode will simply be to present the payment in instalments applying the new calculation mode.

This option does not apply to large companies or tax consolidation groups.

For those companies that could have opted for the change in the first instalment payment but had already filed their Model 202 before this RDL. The AEAT will also allow the change to be made by filing a new Model 202. Applying the new calculation system, together with a form that cancels the first model filed.

Measures in the area of the objective estimation method in Personal Income Tax and the simplified VAT system (“modules”)

The RDL also provides for measures in relation to those taxpayers who, being individuals and carrying out an economic activity, calculate the income of this activity in terms of personal income tax and the VAT payments to be made through the so-called “module” system, in which the income and payments are calculated on the basis of a series of objective elements rather than through the actual income and expenditure of the activity.

The measures in this area are as follows:

These taxpayers may opt out of the module system for the financial year 2020. The deadline for the presentation of the first income tax instalment of the financial year, which has been extended to 20 May 2020. These taxpayers may return to the system of modules in 2021 if they meet the requirements for its application.
For the purposes of calculating income tax instalments and quarterly VAT payments. The calendar days on which the alarm statement was declared in each quarter of the financial year 2020 will not be counted as days of exercise of the activity.

For those persons who have already filed their quarterly returns before this RDL but are interested in making this change. The AEAT will allow this by filing new quarterly returns applying the general regime of income tax and VAT. Along with a form that cancels the previously filed ones.

Measures in terms of deadlines

Those tax deadlines, such as those for the payment of debts or for making allegations or answering summonses, which had been extended to 30 April or 20 May under RDL 8/2020, are now extended to 30 May 2020.

Tax payment measures

Finally, it is established that the enforcement period will not commence on those debts corresponding to declarations or self-assessments filed with the AEAT within the term without payment of the resulting debt. Provided the following conditions are met:

First, that the taxpayer has requested, within the same filing period or before its commencement, the financing referred to in article 29 of RDL 8/2020. Guarantees from the Ministry of Economic Affairs and Digital Transformation for financing by credit institutions. And for at least the amount of such debts.
That the taxpayer provides the tax authorities, up to a maximum of five days from the end of the period for filing the tax return-settlement or self-assessment, with a certificate issued by the financial institution certifying that the application for financing has been made, including the amount and the tax debts involved.
That this request for financing is granted in, at least, the amount of the mentioned debts.
Finally, that the debts are effectively, completely and immediately paid at the time the financing is granted. This requirement will be deemed not to have been met if the debts are not paid within one month of the end of the period mentioned in the first paragraph of this section.

Whatever the case may be, the experts from our Tax Consulting Dept. will be available for your attention. Do not hesitate to contact us.