Tax measures introduced by Royal Decree Law 15/2020

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

In accordance with Royal Decree-Law 15/2020, of April 21, on complementary urgent measures to support the economy and employment, the following measures are adopted in the tax field:

VAT TAX RATE

Rate 0% in certain operations with goods necessary to combat the effects of COVID-19. (art.8 of RDley 15/2020)

From April 23 (1) and until July 31, 2020, the 0 percent VAT rate will be applied to the deliveries, imports and intra-community acquisitions of goods provided for in the Annex of the aforementioned RDley, whose recipients are Public Law entities, clinics or hospital centres, or private entities of a social nature (art.20. Three of the VAT Law).

These operations will be documented on invoice as exempt operations. However, the application of a tax rate of zero percent does not determine the limitation of the right to the deduction of VAT incurred by the taxable person who carries out the operation.

Rate 4% in books, newspapers and digital magazines. (second final provision of RDley 15/2020)

With effect from April 23, 2020, number 2.º of paragraph two.1 of article 91 of the VAT Law is modified, so that the rate of 4% will also apply to newspapers and magazines even when they are considered services provided electronically. This eliminates the difference in tax rates between the physical book and the electronic book.

CORPORATE TAX

Extraordinary option for the modality of fractional payments provided for in article 40.3 of the Corporate Tax Law. (art.9 of RDley 15/2020)(*)

– In the first installment payment (1P/2020): Taxpayers whose deadline for submitting the self-assessment corresponding to split payments (model 202) has been extended until May 20, and whose tax period has started from January 1, 2020, may opt for the modality of fractional payments provided for in article 40.3 of the Corporate Tax Law, by presenting in the aforementioned extended period of the self-assessment corresponding to the first installment payment applying this modality.

– In the second installment payment (2P/2020): Taxpayers whose tax period has started from January 1, 2020, who have not been entitled to the previous extraordinary option in the first split payment, provided that their turnover does not exceed 6 million euros during the 12 months prior to the date on which their tax period began, may opt for the modality of fractional payments provided for in article 40.3 of the Tax Law by submitting the second installment payment on time by applying this modality.

– The first installment payment made in the first 20 calendar days of the month of April will be deductible from the quota of the rest of the fractional payments that are made on account of the same tax period determined in accordance with the option provided for in the aforementioned article 40.3.

– This extraordinary option does not apply to tax groups that apply the special tax consolidation regime.

– The taxpayer who exercises this extraordinary option will be bound by it exclusively with respect to the fractional payments corresponding to the same tax period.

Personal Income Tax

Limitation of the temporary effects of the tacit waiver of the objective estimation method in the year 2020. (art.10 the RDley 15/2020)(*)

Personal income tax payers who determine their net income from economic activities in accordance with the objective estimation method, and within the deadline for the presentation of the installment payment corresponding to the first quarter of 2020, (period that has been extended until May 20), waive the application of the same, may re-determine the performance in accordance with the objective estimation method in the year 2021 provided that they meet the requirements for its application and revoke the waiver of the objective estimation method within the regulatory period (art. 33.1. of the Personal Income Tax Regulation).

This waiver and the subsequent revocation of the same will have the same effects in the special VAT or IGIC regimes.

Personal income tax and VAT

Calculation of fractional payments in the method of objective estimation of personal income tax and the quarterly quota of the simplified VAT regime as a result of the state of alarm in the year 2020. (art.11 of RDley 15/2020)(*)

They will not count, in each calendar quarter of the 2020 financial year, as days of exercise of the activity, the calendar days on which the state of alarm would have been declared in that quarter for:

– Personal income tax payers who develop economic activities included in Annex II of Order HAC/1164/2019, of November 22, (2) and determine the performance of these 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 covered by the special simplified VAT regime, for the calculation of the income on account in 2020.

The calendar days in which the state of alarm has been declared in the first quarter of 2020 are 18 days.

(*) NOTICE: For those taxpayers of Personal Income Tax, VAT and Corporate Tax who have submitted 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 provided for in articles 9, 10 and 11 of said RDley.

The system will consist of the presentation by the interested party of a new self-assessment with a content adjusted to the extent in question and additionally a simple form that identifies the first self-assessment presented, which will accelerate the process of rectification of that self-assessment by the Administration, with cancellation of its economic effects (cancellation of direct debits, requests for postponement / fractionation or compensation, agreement to return amounts received, etc.)

DEADLINES

Extension of the validity periods of certain provisions of RDley 8/2020, of March 17, and RDley 11/2020, of March 31. (first additional provision of RDley 15/2020).

The temporary references made to April 30 and May 20, 2020 in article 33 of RDley 8/2020, of March 17, and in the eighth and ninth additional provisions of RDley 11/2020, of March 31, will be understood to be made on May 30, 2020.

The entry into force of RDley 15/2020, of April 21, occurs the day after its publication in BOE, that is, April 23, 2020.

Non-start of the executive period for certain tax debts in the case of granting financing referred to in article 29 of Royal Decree-Law 8/2020, of March 17, of extraordinary urgent measures to deal with the economic and social impact of COVID-19. (article 11 of RDley15/2020).

The declarations-liquidations and the self-assessments of the competence of the State Tax Administration, presented by a taxpayer within the period provided for in article 62.1 of the General Tax Law (LGT), without making the income corresponding to the tax debts resulting from them, will prevent the beginning of the executive period provided that the following requirements are met:

That the taxpayer has requested within the period of article 62.1 of the LGT or before its beginning, the financing referred to in article 29 of Royal Decree-Law 8/2020, of March 17, and for, at least, the amount of said debts.

That the taxpayer provides the Tax Administration up to a maximum period of five days from the end of the deadline for submitting the declaration-settlement or self-assesment a certificate issued by the financial institution accrediting that the financing request has been made including the amount and the tax debts object of it.

That said application for financing be granted in, at least, the amount of the aforementioned debts.

That the debts are effectively, completely and immediately satisfied at the time of granting the financing. This requirement will be considered non-fulfilled due to the lack of payment of the debts after a period of one month after the period mentioned in the first paragraph of this paragraph had ended.

In case of non-compliance with any of these requirements, the beginning of the executive period will not have been prevented at the end of the period provided for in article 62.1 of the LGT.

For the fulfilment of its purposes, the Tax Administration will have direct and, where appropriate, telematic access to information and complete files relating to the application and granting of the financing referred to in article 29 of Royal Decree-Law 8/2020, of March 17.