Flexibility in the procedures for reducing working hours or suspending contracts (ERTEs), the suspension of the deadline for the payment of taxes and for preparing annual accounts, are some of the emergency measures taken in response to the COVID-19 coronavirus.
As we have already informed you, Royal Decree-Law 8/2020, of March 17, on urgent and extraordinary measures to address the economic and social impact of COVID-19, was published in the Official State Gazette (BOE) on March 18, 2020. The law enters into force on the same day as its publication and remains in effect for one month, with the possibility of extension.
The measures adopted cover many different areas of business activity, notably the streamlining of procedures for reducing working hours or suspending contracts (ERTEs), the suspension of deadlines for tax payments and for preparing annual accounts, and are some of the emergency measures taken in response to the COVID-19 coronavirus.
Below is a summary table of the main labor, tax, and accounting measures.
LABOR MEASURES
Teleworking:
Prioritization of remote work by companies:
– In the event of temporary cessation or reduction of activity.
– When technically and reasonably possible.
– Proportionate adaptation effort.
– The occupational risk obligation is considered fulfilled through a self-assessment voluntarily carried out by the teleworking employee.
Working Hours:
Special Regime for the Right to Adapt and Reduce Working Hours:
– Employees who demonstrate caregiving responsibilities for their spouse or partner, as well as for relatives by blood up to the second degree of consanguinity. Care of family members (due to age, illness, or disability requiring personal and direct care as a direct consequence of COVID-19).
– The company and the employee must make every effort to reach an agreement.
– This right must be exercised in a justified and proportionate manner in relation to the company's situation.
– The right may be implemented through a change of shift, alteration of flexible hours, split or continuous shifts, change of workplace, change of duties, etc., and may reach 100% of the working day if necessary.
– Limited to the duration of the COVID-19 pandemic.
– The counterpart is a proportional reduction in salary and requires 24 hours' notice to the company.
Cessation of activity.
Extraordinary benefit for cessation of activity:
– From the entry into force of the state of alarm.
– Until the last day of the month in which it ends.
– Self-employed workers with suspended activities or a reduction of at least 75%.
Procedure for reducing
Flexibility of the procedure for reducing working hours (ERTE):
– Loss of activity.
– Justified by COVID-19.
– Verification by the labor authority within 5 days.
Social Security Contributions:
Exemption from social security contributions in force majeure procedures (ERTE):
– Employer contribution and contributions for joint collection items.
– 100% for companies with fewer than 50 employees.
– 75% for all other companies.
Suspension of contracts.
Flexibility in the procedure for suspending employment contracts:
– Reduction of working hours for technical, economic, organizational, or production-related reasons.
– With a non-extendable deadline of 5 days for the formation of the committee.
– And 7 days for the inspection report, which will be optional.
Entitlement to contributory unemployment benefits for affected workers:
– Provided that the hiring took place before March 18.
– Affected workers entitled to contributory unemployment benefits.
– No minimum contribution period is required.
Unemployment.
Late submission of applications for initial registration or resumption of unemployment benefits and subsidies:
– Does not imply a reduction in the duration of the right to the benefit.
FISCAL MEASURES
Declarations.
Obligation to file tax returns and self-assessments:
– Remains unchanged.
– Obligation to make the corresponding payments.
– Withholdings, advance payments of Corporate Income Tax, Personal Income Tax and VAT.
Information
Obligations:
– Remain in force.
– Immediate Supply of Information (SII), form 720,…
Suspension of deadlines
. Moratorium for certain deadlines:
– Does not affect customs matters.
– Extension until April 30, 2020:
· Tax settlements already carried out.
· Deadline expirations.
· Installment plans already granted.
· Auctions and adjudication of assets already agreed upon.
· Requirements.
· Seizure proceedings.
· Information requests already communicated.
· Allegations against acts of opening or hearing.
· Sanctioning procedures.
· Declaration of nullity.
· Refund of undue payments
. · Correction of material errors and revocation.
· Execution of guarantees on real estate.
– Includes the Directorate General of the Cadastre.
– Extension until May 20, 2020:
· If the notification occurs after the entry into force of Royal Decree-Law 8/2020.
· Unless a later deadline applies.
Procedures:
Tax application, penalty, and review procedures:
– Already processed.
– Maximum procedure duration.
– Does not count from March 18 to April 30, 2020.
Transfers
exempt from ITPAJD:
– Graduated AJD rate.
– Deeds formalizing contractual novations of mortgage loans and credits.
– Those produced under Royal Decree-Law 8/2020.
Customs
– Exceptional authorization.
– Customs declaration and clearance procedure.
– Carried out by any body or official.
ACCOUNTING AND COMMERCIAL MEASURES
Videoconferencing
Use of videoconferencing:
– Meetings of governing and administrative bodies.
– Even if not provided for in the bylaws.
– With guarantees of authenticity.
– Real-time bilateral or multilateral connection with video.
– Audio from remote attendees.
Annual Accounts
Preparation of annual accounts:
– Suspension of the deadline.
– Affects other legally required documents.
– Resumption for another 3 months.
– Starting from the end of the state of emergency.
Financial statements prepared for the previous year:
– As of the date the state of emergency was declared.
– Two-month extension of the accounting verification period.
– Starting from the end of the state of emergency.
Partners
Separation of partners:
– Suspension of the exercise of the right.
– Even if there is a legal or statutory cause.
– During the state of emergency.
Cooperative members:
Reimbursement of contributions to cooperative members:
– Those who leave the cooperative during the state of emergency.
– Extended until 6 months have elapsed from the end of the state of emergency.
Dissolution
of companies:
– Not possible until 2 months have passed since the end of the state of emergency.
– Even in the case of companies established for a fixed term.
Notice of general meeting:
– Suspension of the 2-month period.
– Adoption of a resolution to dissolve or prevent dissolution.
– Until the state of emergency ends.
Exemption from liability for directors:
– Regarding corporate debts incurred during the state of emergency.
– If a legal or statutory cause for dissolution arose during its validity.
Listed public limited companies
Flexibility measures for listed public limited companies:
– Applicable to governing bodies.
– Extensions of deadlines.
– Powers of the boards of directors.
Registry entries
– Suspension of the expiry period.
– Entries subject to cancellation due to the passage of time.
– Resumption of calculation the day after the end of the state of alarm.
You can contact this professional office with any questions or for further clarification you may have.
Best regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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