The role of labor and tax advice is always fundamental to the success of any business,helping both to improve management or increase productivity, and to comply with the formalities legally established in these matters. In addition to the importance of having an accounting, legal and commercial advisor.
currently the importance of labor and tax advice for coronavirusis all the more important, since the state of alarm was decreed in our country since 14 March as a measure to prevent the spread of the virus; many labor and tax measures that directly affect companies, workers and freelancers havebeen approved in an extraordinary way, and which must be known, with the best allies in the labour and tax advisers being informed.
Emergency measures that seek to soften the impact of coronavirus, and that generate all kinds of frequent doubts that your tax and labor advice will know how to respond accurately.
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Coronavirus doubts your labor and tax advice will be able to respond to
> Labor measures by coronavirus
1. Temporary Employment Regulation (ERTE) Records
The main labour measure for companies has been the Temporary
Employment Regulation
Dossier (ERTE), which offers greater flexibility for the temporary suspension of contracts and temporary reductions in the hours, because covid-19’s losses ofactivity will be considered force majeure.
In this way, companies applying aRTE will be able to alleviate the economic impact of coronavirus withouthaving to resort to the mass dismissal of their employees, which was one of the main fears of workers.
As long as the ERTE is maintained, the company will reduce wage expenses and save payment to the Social Security contribution of its workers, while employees will charge a benefit around 70% of their regulatory base, returning to their job once the Alarm Status ends, and being a guarantee that they will not be able to be fired for the next 6 months.
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Voluntary dismissal of a worker by Covid-19: Main consequences for the company.
2. Moratoriums on the payment of Social Security contributions
A moratorium on the payment of Social Security contributions between April and June 2020 is enabled for businesses, and between May and July for self-employed people.
In addition, companies without debt payment deferments may apply for a moratorium by April to June 2020,having an interest rate reduction, which will be set at 0.5%.
3. Flexibility in electricity and natural gas supplies
Companies that have had to temporarily close may temporarily suspend and modify contractsfor electricity and natural gas supplies, returning to normal once the Alarm State is completed at no cost or penalty.
4. Extraordinary measures on quotations
Coronavirus applies a 100% reduction in security contribution for companies with fewer than 5 employees,as well as 75% for other companies.
5. Measures to facilitate telework
In order to ensure the safety of workers and reduce the chances of contagion, companies are required to facilitate coronavirus teleworking and a material financing programme has been launched with support for SMEs with no previous experience in teleworking.
6. Extending deadlines for product return
In order to maintain the contention of citizens and prevent them from taking to the streets, the return times of any product purchased until the end of the Alarm State are extended.
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New complementary economic and social measures to address COVID-19.
> Fiscal measures by coronavirus
1. Extending the deadline for filing tax returns and self-assessments
An extension of the deadline for filing and entering quarterly tax returns and self-assessments of VAT, IRPF and Companies,which was scheduled for April 20, has been approved until May 20, 2020 (or May 15 if the payment is directed).
This measure will be eligible for companies with a turnover of less than EUR 600,000 peryear, while the rest will have to file the declarations and self-claims by 20 April at most.
2. Extension of deadline for payments for tax agency settlements until April 30
The term of settlement payments to the Tax Agency is also extended until April 30,provided that it has not concluded at the entry into force of the Royal Decree-Law.
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3. Suspension of deadlines for account formulation
The three-month reporting period fromthe end of the financial year until the end of the Alarm State is suspended, resumed once it has ended for another three months again. A measure that directly affects the deadlines for legalizing books or depositing accounts.
4. Suspension of the expiry period for registration seats
As long as the Alarm Status remains in effect, the expiry periods of the registration seats are suspended.
5. Exemption from the gradual quota levied on notary documents (ITP and AJD)
The exemption from the gradual fee of notary documents (ITP and AJD) is provided for those deeds of formalization of contractual novations of loans and / or mortgage loans that will be protected by Royal Decree-Law 8/2020.
conclusion
These are some of the main measures taken by the Government to alleviate the economic consequences that coronavirus is leaving on businesses. With all the questions generated, that your labor and tax advice will know how to answer. If your company does not have an advice, we offer you the advice for companies of AYCE Laborytax where our professionals will be happy to assist you.
