New tax debt deferral

With the publication of Royal Decree-Law 5/2021, of 12 March, on extraordinary measures to support business solvency in response to the COVID-19 pandemic, which came into force on the same day as its publication, the third additional provision establishes the deferral of tax debts, increasing to four months the period for delaying payment of tax debts without interest for late payment. (Previously, as regulated in article 8 of Royal Decree-Law 35/2020, of 22 December, the period was three months).

This new deferral of tax debts consists of the following:

1. Within the scope of the powers of the State Tax Administration, for the purposes of the deferrals referred to in Article 65 of Law 58/2003, of 17 December, General Taxation, deferral of payment of the tax debt corresponding to all those tax returns and self-assessments whose deadline for submission and payment is from 1 April to 30 April 2021, both inclusive, will be granted, provided that the applications submitted up to that date meet the requirements referred to in Article 82. 2.a) of the aforementioned Law. (1)

2. This deferral shall also be applicable to the tax debts referred to in letters b), f) and g) of Article 65.2 of Law 58/2003, of 17 December, General Taxation Law. (2)

3. In order for deferral to be granted, the debtor must be a person or entity with a turnover of no more than 6,010,121.04 euros in 2020.

4. The conditions of the deferral shall be as follows:

a) The term shall be six months.

b) No late payment interest shall accrue during the first four months of the deferral.

With this measure, the Sole Repealing Provision repeals Article 8 of Royal Decree-Law 35/2020, of 22 December, on urgent measures to support the tourism, hotel and catering and commerce sector and on tax matters, which regulated the previous measure on the deferral of tax debts.

Another tax measure contained in Royal Decree-Law 5/2021 of 12 March affects the IAJD. Specifically, number 31 is added to Article 45.I.B) of the Consolidated Text of the Law on Transfer Tax and Stamp Duty, approved by Royal Legislative Decree 1/1993, of 24 September, with the following wording:

“31. When there is a registrable real guarantee, the deeds formalising the extension of the maturity terms of financing operations that have received a public guarantee provided for in Article 7 of Royal Decree-Law 5/2021, of 12 March, on extraordinary measures to support business solvency in response to the COVID-19 pandemic, shall be exempt from the gradual payment of notarial documents of the documented legal acts modality of this tax”.

(1) 2. The taxpayer may be totally or partially exempted from the provision of the guarantees referred to in the previous paragraph in the following cases: a) When the tax debts are less than the amount established in the tax regulations. This exception may be limited to requests made at certain stages of the collection procedure.

(2) b) Those corresponding to tax obligations that must be met by the withholder or the person obliged to make payments on account. f) Those deriving from taxes that must be legally passed on unless it is duly justified that the amounts passed on have not been effectively paid. g) Those corresponding to tax obligations that must be met by the person obliged to make payments in instalments of Corporation Tax.