Main fiscal measures for DANA damages

• Direct aid: Direct aid is granted to self-employed workers and companies that are taxpayers of personal income tax for economic activities, or taxpayers of corporate tax that have their tax domicile in the municipalities affected by the DANA and also for those who have establishments or operations in said municipalities, even if they do not have their tax domicile in said localities. In the case of companies, the amount of these grants will depend on the volume of operations in the 2023 financial year and in the case of entrepreneurs or professionals who are natural persons, the amount of the grant will be 5,000 euros. These grants will be requested at the Tax Agency's online office between November 19 and December 31, 2024.

• Extension of the submission deadline until January 30, 2025: For the submission of tax returns and self-assessments whose due date is between October 28 and December 31, 2024.

• DANA Special Postponement: Possibility of requesting a special payment deferral (payment is deferred for 24 months, with no late payment interest for the first 6 months) for tax returns due between October 28 and January 30.

• Extension of the payment deadline until February 5, 2025:

  • Regarding the second payment of Income Tax for 2023: for those taxpayers with tax domicile in the province of Valencia and in the municipalities affected by the DANA who have pending payment. Affected taxpayers will be considered to be up to date with their tax obligations. If there are other debts, you may not be current.

  • Of debts in the voluntary period, in the executive period and the due dates of payment terms and the fractions of the deferral and fractionation agreements granted, whose due date would not have concluded on November 7, 2024. Taxpayers who have benefited from the extension of the deadline for debts during the voluntary period will be considered to be up to date with their tax obligations. If there are other debts, you may not be current.

• Taxpayers in modules that develop their economic activity in the affected area:

  • In the Personal Income Tax, a 25% reduction in the net income of modules applicable in favor of persons who develop their economic activity in the objective estimation method is approved, with its subsequent transfer to the calculation of the fractional payments corresponding to the last quarter of 2024.

  • In the Value Added Tax, a 25% reduction is approved on the rate accrued by current operations for persons who develop their economic activity under the simplified regime.

  • These taxpayers are allowed to exceptionally waive the application of the module system in 2024, paying taxes in this case under the simplified direct assessment system, without this decision preventing the taxpayer from applying the module system again in 2025 or 2026. The waiver may be made during the month of December 2024 or by submitting within the statutory period the declaration corresponding to the fractional payment of the fourth quarter of 2024 in the manner provided for the direct estimation method.

• Other Tax Benefits

  • The exemption from the 2024 Real Estate Tax is granted for properties located in municipalities affected by the DANA. Affected taxpayers, if they have already made the payment, may request a refund.

  • A proportional reduction in the IAE rate for 2024 is granted for entities and professionals with business premises located in the affected municipalities. Affected taxpayers, if they have already made the payment, may request a refund.