Spain. Tax updates following RD-Ley 15/2020. Coronavirus

On April 22nd, Boletín Oficial del Estado issued Real Decreto-Ley 15/2020, which included urgent measures to support the economy and employment protection. This RD-Ley 15/2020, among others, adopts the following measures:

Updates to reduce the operating costs of SMEs (Small & Medium size businesses) and the self-employed persons

Rental arrangements

Among the exceptional measures adopted during the state of alert and in view of the lack or reduction of income during this period, a procedure has been established to enable the parties to reach an agreement for the adjustment of the payment of rent for premises/spaces.

Lease for non-housing use with large tenants

As long as no prior agreement on deferment or reduction of rent has been reached, a moratorium on the payment of rent may be requested:

• This may be requested by the tenant (natural or legal person) of a non-residential contract
• The lessor, who must accept the moratorium, must be a company or public housing entity, or a large holder, understood as a natural or legal person who owns more than 10 urban properties, excluding garages and storage rooms, or a built area of more than 1,500 m2
• Deadline for application: one month from the entry into force of this Real Decreto-Ley (23 April 2020)
• It will affect those incomes during the period of the alarm state and its extensions and the following monthly payments, which may be extended one by one, but for no more than four months
• The moratorium will be without penalty or interest
• The payments will be fractioned in a period of two years from the moment the situation of the state of alarm is overcome and its extensions or from the termination of the four months mentioned above, all this always in the period of validity of the contract of lease or its extensions

Other non-housing rentals

The temporary and extraordinary postponement of the payment of the rent or a reduction thereof may be requested, provided that it has not been agreed by both parties on a voluntary basis.

• This may be requested by the natural or legal person who is the tenant of a lease for non-housing use
• The landlord must not be a large holder.

Deadline for application: one month from the entry into force of this Real Decreto-Ley (23 April 2020)

• The mandatory deposit set out in the rental contract may be freely disposed of and may be used to pay all or part of one or more monthly rental payments
• If the deposit is totally or partially available, the tenant must replace the amount drawn down within one year of the conclusion of the agreement or within the remaining term of the contract if this term is less than one year

Small and medium sized companies that can access the measures described above:

SME tenants who wish to take advantage of these measures in relation to the property rental contract affecting their activity must comply with the following requirements:

• That the limits established in Article 257.1 of Real Decreto-Ley 1/2010 of 2 July, approving the revised text of the Law on Corporations (Requirements for drawing up the abridged balance sheet), are not exceeded.
• That its activity has been suspended as a result of the entry into force of RD 463/2020, of 14 March, or by orders issued by the competent authority and the competent authorities delegated under the aforementioned royal decree and accredit the reduction of at least 75 % of its turnover in the month prior to the month in which the postponement is requested.

Tax Compliance Updates

Corporate Income Tax Fractional Payments

Those taxpayers whose volume of operations has not exceeded 600,000 euros who, in accordance with RDL 14/2020, can extend the deadline for submitting their settlements and self-assessments until 20 May 2020, will have the option of applying the tax base method for calculating the fractionated payments on the part of the tax base of the first 3, 9 or 11 months.

This measure is only applicable to tax periods starting on or after 1 January 2020 and with exclusive effect for that period. For those taxpayers who have not been able to exercise this option and whose net turnover does not exceed 6,000,000 euros, it is foreseen that the option can be exercised within the deadline for the payment in instalments to be presented in the first 20 days of October 2020, also determined by the application of the aforementioned tax base method.

This measure will not apply to tax groups that apply the special tax consolidation regime.

The taxpayer who exercises the option under the above provisions will be bound by this method of payment by instalments, exclusively, in respect of payments corresponding to the same tax period.

Extension of deadlines

At the same time, the temporary validity of certain tax measures contained in Royal Decree-Laws 8/2020 and 11/2020, which were limited to 30 April 2020 or 20 May 2020, is extended until 30 May.

This extension of the deadline will also apply to the tax administrations of the Autonomous Communities and local authorities as a result of the referral made by Article 53 of Royal Decree Law 11/2020.

The time references made in Article 33 of Royal Decree Law 8 to 30 April and 20 May 2020 and which from 23 April will be extended to 30 May, in general terms, are those referred to in the following time periods:

• Deadlines for the payment of tax debts settled by the Administration that are in both the voluntary and executive periods
• Time limits set out in the Deferral and Fractionation Agreements granted
• Time limits related to the development of auctions and awarding of goods seized in enforcement proceedings
• Deadlines to attend the requirements, liens and requests for information with tax implications
• Time limits for making allegations in the event of the opening of such proceedings or of a hearing, issued in proceedings for the application of taxes, penalties or declarations of nullity, the return of undue income, the correction of material errors and revocation.
• Time limits for attending to requests and applications for information made by the DIrección General del Catastro

Likewise, the time references made in the eighth and ninth additional provisions of Royal Decree Law 11/2020 of 31 March, which also extend to 30 May, are those referring to the time limits for administrative appeals and other procedures of challenge, claim, conciliation, mediation and arbitration, as well as to the effects of the maximum duration of the time limit for the execution of the resolutions of economic-administrative bodies, and to the effects of the calculation of the time limits of prescription and expiration of any actions and rights contemplated in the tax regulations.

Marta Reguera Pradas
Director Tax Support

Augusto Berutich
Director. Head of Tax

All information contained in this publication is up to date on 2020. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.