New regulations for 2020

Tax measures introduced by the Royal Decree-Law 15/2020, of 21 April

de medidas urgentes complementarias para apoyar la economía y el empleo.(BOE, 22-abril-2020)

NOTE: Royal Decree-Law 15/2020 of 21 April on urgent complementary measures to support the economy and employment ( BOE April 22 )

Pursuant to Royal Decree-Law 15/2020, of 21 April, on urgent complementary measures to support the economy and employment, the following measures have been adopted in the field of taxation:

Personal Income Tax – Limitation of the temporary effects of the tacit waiver of the objective estimation method in fiscal year 2020.(art. 10 of RDley 15/2020)^(*)

• Personal income taxpayers who determine their net income from economic activities pursuant to the objective assessment method, within the deadline for submitting the payment by instalments corresponding to the first quarter of 2020 (a deadline that has been extended until 20 May), waiving its application, may once again determine their income pursuant to the objective assessment method in year 2021 provided that they meet the requirements for its application and revoke the objective assessment method waiver within the regulatory deadline (Art. 33.1. of the Personal Income Tax Regulation).

  This waiver and the subsequent revocation of the waiver shall have the same effect under the special VAT or IGIC systems.

  Personal Income Tax and VAT - Calculation of the payments in instalments as part of the Personal Income Tax objective estimation method and the quarterly payment of the simplified VAT regime as a result of the state of alarm in 2020. (art.11 of RDley 15/2020)^(*)

  In each calendar quarter of 2020, the calendar days in which the state of alarm was effective during that quarter shall not be counted as days for the exercise of activities for:

  • Personal income tax taxpayers who carry out economic activities included in Annex II of Order HAC/1164/2019, of November 22, ⁽²⁾ and determine their performance by the objective estimation method, for the calculation of the fractional payment based on the base data.

  • VAT taxpayers who carry out business or professional activities included in the aforementioned Annex II and are subject to the special simplified VAT system, for the calculation of the payments on account in 2020.

  The calendar days on which the state of alarm was declared in the first quarter of 2020, which was 18 days.

  ^(*)NOTIFICATION: For Personal Income Tax, VAT and Corporation Tax taxpayers who filed their self-assessments prior to the entry into force of Royal Decree-Law 15/2020, the Tax Agency will immediately implement a simple system to facilitate the application of the measures set out in Articles 9, 10 and 11 of the aforementioned Royal Decree-Law.

  The system will consist of the affected party submitting a new self-assessment, the content of which will be adjusted to the measure in question, in addition to a simple form identifying the first self-assessment submitted, which will speed up the process for the Administration correcting the self-assessment, cancelling its economic effects (cancelling direct debits, requests for deferment/payment in instalments or compensation, agreement to refund amounts paid, etc.).

  TIME PERIODS

  Extension of the validity periods for certain provisions of Royal Decree Law 8/2020 of 17 March and Royal Decree Law 11/2020 of 31 March. (First Additional Provision of RDley 15/2020).

  The time-related references made to 30 April and 20 May 2020 in Article 33 of Royal Decree Law 8/2020, of 17 March, and in the eighth and ninth additional provisions of Royal Decree Law 11/2020, of 31 March, shall be understood as referring to 30 May 2020.

  Royal Decree Law 15/2020, of 21 April, shall enter into force on the day following its publication in the Official State Gazette, i.e. 23 April 2020.

  Non-commencement of the enforcement period for certain tax debts in the case that financing has been granted as referred to in Article 29 of Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to respond to the economic and social impact of COVID-19. (Article 11 of Royal Decree Law 15/2020).

  The tax returns and self-assessments for which the State Tax Administration is responsible, submitted by a taxpayer within the period provided for in Article 62.1 of the General Tax Law (LGT), without making the payment corresponding to the tax debts resulting therefrom, shall mean that the enforcement period will not begin, provided that the following requirements are met:

  • The taxpayer has applied for the financing referred to in Article 29 of Royal Decree-Law 8/2020, of 17 March, within the period set out in Article 62.1 of the LGT or before it begins, and for at least the sum of these debts.

  • The taxpayer must provide the Tax Administration with a certificate issued by the financial institution certifying that the finance application has been made, including the amount and the tax debts involved, at least five days prior to the end of the deadline for filing the tax return or self-assessment.

  • This finance application is granted for at least the sum of the above-mentioned debts.

  • The debts are effectively, fully and immediately satisfied at the time the financing is granted. This requirement shall be deemed not to be met by the failure to pay the debt after one month from the end of the payment period indicated in the first paragraph of this section.

  In the event of a breach of any of these requirements, the start of the enforcement period will not be understood as having been suspended at the end of the period provided for in Article 62.1 of the LGT.

  To achieve its purposes, the tax administration shall have direct and, where appropriate, online access to the information and full cases relating to the application for and granting of the finance referred to in Article 29 of Royal Decree-Law 8/2020 of 17 March.

Madrid, 22 April 2020

⁽¹⁾ Date of entry into force of RDley 15/2020, April 21. ^(Back)

⁽²⁾ Order HAC/1164/2019, of November 22, which develops for the year 2020 the objective estimation method for personal income tax and the special simplified VAT regime ( BOE November 30 ) . ^(Back)