As you already know, Royal Decree-Law 5/2021 introduced a series of aid measures to mitigate the economic effects of Covid-19. Among these, the Direct Aid program stands out, which we analyzed in a dedicated article.
We would now like to inform you of the new features introduced by Order HAC/348/2021, of April 12, and the resolution of April 20, 2021 (Royal Decree 6/2021) in its first final provision.
These are very important new developments as they make access to these benefits more flexible:
- Beneficiaries:
With the change regulated in Royal Decree-Law 6/2021, of April 20, the Autonomous Communities and the cities of Ceuta and Melilla are allowed to include, within the allocation established for each of them, as beneficiaries of these aids other sectors, in addition to the 95 included in Annex I of Royal Decree-Law 5/2021.
Specifically, they are authorized to expand the number of companies and self-employed workers taking into account the productive fabric of each region and the effects that the pandemic containment measures may have had on their companies and self-employed workers.
- Trading volume:
- Objective estimation: With reference to Order HAC/348/2021, of April 12, when the beneficiary has applied the objective estimation regime in 2019 or 2020, it will not be necessary to meet the eligibility requirement of a drop of more than 30% in Value Added Tax or equivalent indirect tax in 2020 compared to 2019. Maximum amount: 3,000 euros
- Direct estimation: With reference to Order HAC/348/2021, of April 12, when the businessperson or professional applying for aid carries out a retail trade whose income from economic activities is determined by the direct estimation regime in the Personal Income Tax, applying for said activity the special regime of the equivalence surcharge in the Value Added Tax or equivalent tax, it will be understood that their volume of operations in the 2019 financial year constitutes the total of the taxable gross income from their retail economic activity included in their Personal Income Tax return for 2019, while their volume of operations in the 2020 financial year will be the sum of the taxable gross income included in their self-assessments of installment payments for the 2020 financial year.
- Attribution of income: With reference to Order HAC/348/2021, of April 12, the beneficiary of the aid when the income attribution regime of the IRPF is applied will be the applicant entity and not its partners, joint owners, heirs or participants.
- With reference to Order HAC/348/2021, of April 12: when the applicant for aid has their tax domicile in the Cities of Ceuta or Melilla or exclusively carries out non-taxable or exempt operations that do not require periodic self-assessment of VAT (articles 20 and 26 of Law 37/1992, of December 28, on Value Added Tax) and does not apply the objective estimation regime in Personal Income Tax in 2019 and 2020, the volume of operations in 2019 and 2020 will be understood to be:
- For taxpayers subject to Personal Income Tax, information on the total of the gross taxable income from their economic activity included in their 2019 tax return, as well as the sum of the gross taxable income from their economic activity included in their self-assessments of installment payments corresponding to 2020.
- For taxpayers of Corporation Tax or Non-Resident Income Tax with a permanent establishment, the information on the taxable base declared in the last installment payment of the years 2019 and 2020 respectively in the event that said installment payments are calculated according to the provisions of article 40.3 of Law 27/2014, of November 27, on Corporation Tax.
- With reference to Order HAC/348/2021, of April 12, the number of employees will be calculated taking into account the average number in 2020 of recipients of monetary income from work recorded in the monthly or quarterly declarations of withholdings and payments on account (model 111)
- The distribution of the drop in the volume of operations among the territories in which the applicants for aid operate will be based on the remuneration for personal work recorded in the annual summary information statement of withholdings and payments on account, which will be attributed to each territory according to the residence of the recipients.
- Consolidated groups: In the case of consolidated groups that pay Corporate Income Tax under the consolidated taxation regime, the recipient for the purposes of compliance with the eligibility requirements and transfers will be the aforementioned group as a single taxpayer, and not each of the entities that comprise it, so the volume of operations to be considered to determine the fall in activity will be the result of adding all the volumes of operations of the entities that make up the group.
- With reference to Order HAC/348/2021, of April 12 (Section 1, point 3), the application will be submitted by the company representing the group and will include all entities that were part of it in 2020.
- When entities were part of a group in 2019, but not in 2020, they will be considered as independent and may apply for aid provided they meet the requirements individually.
- Calls for proposals:
You can apply to calls made by different Autonomous Communities and the Cities of Ceuta and Melilla for the allocation of direct aid.
In the case of entrepreneurs, professionals or entities whose volume of operations in 2020 was less than or equal to 10 million euros and do not apply the group regime in the Corporate Tax, they may only participate in the call made by the Autonomous Community or, where applicable, the Cities of Ceuta and Melilla, in which their tax domicile is located.
Groups and businesses, professionals, or entities whose 2020 turnover exceeded €10 million and that conduct their economic activity in more than one autonomous region or city may participate in calls for proposals issued in all the territories where they operate. In other words, they will be considered independent and may apply for aid individually, provided they meet the requirements.
- Negative result in fiscal year 2019:
Those entrepreneurs or professionals, entities and consolidated groups who in the Personal Income Tax return for 2019 have declared a negative net result for the economic activities in which they have applied the direct estimation for its determination or, where applicable, the taxable base of the Corporate Income Tax or the Non-Resident Income Tax has been negative in said year, before the application of the capitalization reserve and compensation of negative taxable bases.
Exception:
The Autonomous Communities and the Cities of Ceuta and Melilla may establish exceptions for viable companies taking into account exceptional circumstances that occurred in 2019, duly justified in their calls for proposals.
- For example, the impact of the Thomas Cook bankruptcy on tourism companies in the Canary and Balearic Islands.
If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
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