Once the initial days following the first news about the situation created by the COVID-19 epidemic had passed, and once various provisions, communications or announcements had been published by different bodies with competence in the tax field, both from the General State Administration and from different Autonomous Communities, which have culminated with the publication of Royal Decree-Law 8/2020 of March 17, we wanted to summarize the measures that, in the tax field, may affect the management of your business.
These are measures that will encourage compliance with tax obligations and that attempt to mitigate the negative impact on companies' cash flow and management capacity.
It should be noted that the obligations relating to the filing of declarations or self-assessments remain as established, in terms of time and form.
Suspension of deadlines
1.- Extension until April 30, 2020 of the following acts provided that they were already initiated before March 18, 2020 and whose term had not expired:
- Debt payments arising from settlements carried out by the Administration, as well as from enforcement orders (guarantees on real estate that may have been provided will not be executed)
- Payments of installments and fractions of deferral agreements already granted
- Payments of installments related to auctions and awards of goods (art 104.2 and 104bis General Collection Regulations)
- Handling requests, enforcement proceedings and information requests.
- Submission of allegations before acts of opening said procedure or of hearing.
2.- Extension until May 20, 2020 of the same procedures in the previous section that are communicated from March 18 onwards unless the period granted by the general rule itself is longer.
Deferral of tax debts
Tax debt arising from tax returns and self-assessments whose payment deadline falls between March 18 and May 30, 2020, inclusive, including debts resulting from withholdings and payments on account, passed-on taxes (VAT charged) and advance payments of Corporation Tax that are considered non-deferrable under the General Tax Law, may be subject to special deferral with the following
Conditions of the postponement:
- Maximum payment term: six months
- Free for the first three months of the deferral.
Requirements:
- The debtor must have a turnover in 2019 not exceeding €6,010,121.04, that is, it must not be considered a Large Company in the 2020 financial year
- The amount of the debt to be deferred cannot exceed €30,000, including in the calculation the amount of previous debts not yet due.
- The deferral must be requested in the specific manner established for this purpose, expressly stating “RDL Deferral”
Example:
Quarterly settlement of Personal Income Tax (IRPF) form 111 amounting to €7,500 corresponding to Q1/2020, due on 20/04/2020. The company is not considered a Large Company in 2020 and has an outstanding payment of €14,300.00 from a previous deferred payment for VAT corresponding to Q4/2019.
Since the total debt does not exceed €30,000 (€7,500 + €14,300) and the company is not considered a Large Company in 2020, it can take advantage of the special deferral.
The payment deadline will be extended until October 20, 2020 (six months)
If you settle the debt before 20/07/2020 (three months), no interest will accrue, and you will only pay the principal of the debt, that is, €7,500
If you settle the debt from 20/07/2020 until 20/10/2020, the days between 20/07/2020 and the date of payment will be taken into account for the calculation of interest.
Property Transfer Tax and Documented Legal Acts.
Deeds formalizing contractual novations of mortgage loans and credits made under Royal Decree-Law 8/2020 of March 17, on urgent extraordinary measures to address the economic and social impact of COVID-19, are declared exempt
This refers to mortgage debt for the acquisition of the main residence where the debtor is in the cases of economic vulnerability established in this Royal Decree-Law 8/2020 and which are in force as of March 18, 2020.
At Ambit Assessor we are more committed than ever to supporting businesses, continuing our services across all areas. Don't hesitate to contact us with any questions or concerns. Our experts will assist you with managing your obligations and resolving any issues.
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A graduate in Business Administration from the University of Barcelona, she has furthered her training in tax and accounting by attending courses and seminars offered by the EAE Business School, the College of Economists, the Bar Association, and the Terrassa Chamber of Commerce.
She combined her studies with work in the family business and as a substitute in the production audit department of Bimbo SA.
She has spent her professional career at Àmbit Assessor, where she joined in 1991 to support the accounting and tax department, becoming a consultant a few years later.
Since 2000, she has been the managing partner of the company.
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