In the BOE on April 22, Royal Decree-Law 15/2020of April 21 of tax measures was published complementary needs to support the economy and employment, which, among others, incorporates a number of tax measures, such as the reduction of VAT applicable to the supply of certain health materials and electronic books, magazines and newspapers; the waiver of the objective estimation regime (“modules”) of the IRPF and special VAT and IGIC regimes, or the option to change from percentage on quota to percentage based on split payments of corporation tax.
The measures adopted in DRL 15/2020 entered into force on 23 April. This standard incorporates more than 30 measures that strengthen the financing of companies, provide support in the tax field, facilitate the adjustment of the economy, and protect employment and citizens.
Below, we inform you of the main tax measures that incorporate this Royal Decree-Law 15/2020:
1. Reduction of VAT tax rates
A rate of 0% is established for intra-Community deliveries, imports and acquisitions of sanitary material,which shall be documented in invoice as if they were exempt transactions, with the following characteristics:
- Operations carried out between 23 April and 31 July 2020.
- The addressees must be public law entities, clinics or hospitals, or private social entities referred to in paragraph three of Article 20 of Law 37/1992 on VAT.
- These transactions do not limit the right to deduct.
The tax rate for deliveries of books, magazines and electronic newspapers is reduced from 21 to 4%. that, as with paper ones, they do not fundamentally contain advertising, while increasing the percentage of the revenue that the publisher has to provide to apply the general rate from 75 to 90%. Thus, with effect from 23 April 2020,the reduced rate of 4% shall apply to:
Books, newspapers and magazines, even where they are considered services provided electronically, which do not contain only or fundamentally advertising and do not consist entirely or predominantly of video content or audible music, as well as supplementary elements that are delivered in conjunction with those for a single price.
Work performances which immediately result in the obtaining of a book, newspaper or magazine in spread or continuous, of a photolith of such goods or consisting of the binding thereof shall be understood.
For this purpose, magnetophonic tapes, discs, video cassettes and other similar sound or video media that constitute a functional unit with the book, newspaper or magazine, perfecting or completing its contents and sold with them, with the following exceptions, shall be considered as complementary elements:
- (a) Magnetophonic discs and tapes containing only musical works and whose market value is greater than that of the book, newspaper or magazine with which they are delivered together.
- b) Video cassettes and other similar sound media or video media containing motion pictures, programmes or television series of fiction or musical and whose market value is greater than that of the book, newspaper or magazine with which they are delivered together.
- c) Computer products recorded by any means on the media indicated in the letters above, where they mainly contain programs or applications that are marketed independently on the market.
Books, newspapers and magazines will be understood to contain mainly advertising when more than 90% (was 75%) of the income they provide to their publisher is obtained for this concept.
Sheet music, maps and drawing notebooks, with the case of electronic articles and devices, shall be considered to be covered by this issue.
2. Option to change percentage on quota to percentage based on split payments of corporation tax
In order to adapt the calculation applicable to the settlements of the Tax on Economic Reality, it is allowed, for tax periods initiated from 1 January 2020 and with exclusive effect for that period, that taxpayers whose volume of transactions has not exceeded the amount of EUR 600 000 exercise the option to make split payments, on the part of the taxable amount for the period of the first 3, 9 or 11 months, by submitting within the period extended by Royal Decree-Law 14/2020 of the split payment determined by application of that taxable form. For taxpayers who have not been able to exercise the option in accordance with the foregoing and whose net amount of turnover does not exceed EUR 6,000,000, the option is expected to be possible within the period of the split payment to be submitted within the first 20 days of October 2020, also determined by application of that taxable form.
This measure shall not apply to tax groups applying the special tax consolidation regime regulated in Chapter VI of Title VII of Law 27/2014 on corporation tax.
The taxpayer exercising the option in accordance with the above shall be bound by this method of payment split exclusively in respect of payments for the same tax period.
In short, we must take into account:
- Fractional payment Micropymes: taxpayers with a turnover not exceeding 600,000 euros – and do not pay for the vat consolidation regime or the VAT OER – may choose to make the first split payment of the 2020 by the percentage system on the basis of the months elapsed for the financial year – from January to March if the financial year coincides with the calendar year – if they present model 202 through 20 May by this system.
- Fractional payment SMEs: taxpayers with volumes of transactions not exceeding EUR 6,000,000, who have not been eligible for the change in modality such as Micropymes and who do not pay for the special group regime in this tax, may switch to the percentage option on the basis of, but in the second split payment for the financial year, the split payment made in 1P is naturally deductible. In this way they will be able to recover, at least in part, the excess tax advance that may have occurred in the 1P.
3. Waiver of the objective estimation regime (“modules”) of the IRPF and special regimes of VAT and the General Canon Indirect Tax (IGIC).
It is essential to temporarily adapt the amounts of split payments and income on account of the different taxes that are determined according to signs, indices or modules, when seeing their activity altered by the health emergency we suffer.
Thus, they are adapted, in proportion to the time period affected by the declaration of the state of alarm in economic activities, the calculation of split payments in the IRPF’s objective estimation methodand the on-account entry of the simplified VAT regime, which, being calculated on signs, indices or modules, previously determined as normal, would entail amounts not adjusted to the reality of their current income.
Also, to make the SME and self-employed regime more flexible, the mandatory linkage that for three years is legally established for resignation irPF’s objective estimation method, the simplified regime and the special scheme for agriculture, livestock and VAT fishing, so that taxpayers can reapply that method in 2021, provided that they meet the regulatory requirements for its implementation. In this way, by being able to determine the amount of their net income in accordance with the direct estimation method, they may more accurately reflect the reduction in income produced in their economic activity as a result of COVID-19, without affecting the method of income determination applicable in the following financial years.
The waiver will also have the same effects with respect to the CanonIcal General Tax (IGIC).
Thus, with effect from April 23, 2020:
- The tender waiver of the objective estimation regime,made by submitting the fractional payment of the first quarter in time – until 20 May – is allowed to calculate it in direct estimation, will have effect only by 2020. These taxpayers may return in 2021 to determine the net module return by revoking this year’s resignation in December 2020 or by submitting the first split payment of 2021 in this form.
- The same applies in VAT and IGIC with respect to the waiver and revocation of special regimes.
- In addition, for IRPF taxpayers who determine the net income by objective estimate – of the activities related to ANNEX II to Order HAC/1164/2019 – and those of VAT under the simplified regime, who do not want to give up modules, for the calculation of split payments and account entry based on the base data for the 2020 financial year, respectively, they will not have to count as days of exercise of the activity the calendar days of the quarter in which there would have been alarm status.
In short, in the first quarter they will not count 18 days or, what is the same, the fractional payment of the IRPF and the on-account income will be 80.22% of what would have corresponded without approving this measure.
4. No start of the executive period for certain tax debts in the case of financing
In the field of the powers of the State Tax Administration,, declarations and self-liquidations submitted by a taxpayer within the period provided for in Article 62.1 of Law 58/2003 of 17 December, General Tax, without making the income corresponding to the tax debts resulting thereof, shall prevent the comction of the executive period provided that certain requirements are met.
In particular, if there is a self-assessment, the period of which ends between 20 April and 30 May, without making the deposit, the executive period – which would entail the requirement of the apremium surcharge – will not begin if the following requirements are met (non-compliance with any of them would mean the start of the executive period the day following the end of the voluntary declaration period):
- Self- relaxation is filed in time.
- The taxpayer has requested, during the voluntary period of submission of the self-agreements, a loan endorsed by the Ministry of Economic Affairs and Digital Transformation -art. 29 RD-Law 8/2020- at least for the amount thereof and for payment.
In particular, Article 29 of RDL 8/2020 provides:
1. To facilitate job maintenance and alleviate the economic effects of COVID-19, the Ministry of Economic Affairs and Digital Transformation will provide guarantees to financing granted by credit institutions, financial credit institutions, electronic money institutions and business and self-employed payment institutions to meet their needs arising, inter alia, from invoice management, the need for a movement , maturities of financial or tax obligations or other liquidity needs.
2. The Ministry of Economic Affairs and Digital Transformation may grant guarantees of a maximum amount of EUR 100 billion. The applicable conditions and requirements to be met, including the maximum period for the application of the guarantee, shall be established by Council of Ministers Agreement, without the need for further regulatory development for its implementation.
3. The guarantees covered by this standard and the conditions developed in the Council of Ministers Agreement shall comply with European Union state aid rules.
See the Res. 10 April 2020, of the Secretary of State for Economy and Business Support, which publishes the Agreement of the Council of Ministers of 10 April 2020, instructing the Official Credit Institute to launch the second tranche of the line of guarantees approved by R.D.-Law 8/2020 of 17 March and establishing that its beneficiaries are small and medium-sized enterprises and self-employed persons affected by the economic consequences of COVID-19 (‘B.O.E.’ 11 April), and resolution of 25 March 2020 of the Secretary of State for The Economy and Business Support, which publishes the Agreement of the Council of Ministers of 24 March 2020 approving the characteristics of the first tranche of the ICO’s line of guarantees for businesses and self-employed persons, to alleviate the economic effects of COVID-19 (‘B.O.E.’ March 26).
- Contribution of a certificate issued by the financial institution proving such an application within a maximum period of 5 days from the end of the period of submission of the self-association. In the case of a self-accuracy submitted before 23 April, although the executive period would have already begun, they will still be considered on a voluntary period if until 30 April the certificate is provided, obtains the financing and effectively satisfies the debts, at most, within one month of the end of the period for submitting the self-accuracy.
- That funding be granted at least for the amount of tax debts.
- That these tax debts be met, at most, within one month of the end of the period for filing the self-assessment.
5. Deferral of debts in the port area
Upon request, the Port Authorities may grant the deferral of the corresponding tax debt from the settlements of port fees accrued from the date of entry into force of Royal Decree-Law 7/2020 of 12 March, taking urgent measures to respond to the economic impact of COVID-19 (i.e. from 13 March) and until June 30, 2020,inclusive.
The conditions for deferral shall be as follows:
- (a) The maximum period shall be six months.
- b) No interest on late payment shall be accrued and no guarantees will be required for deferment.
6. Exceptional availability of pension plans
The possibility, established in DR-Law 11/2020, to expand the possibilities of collecting benefits from different social security systems is developed by extending the contingencies for which the bound duties can be made in them. For example, it regulates how to establish the circumstances by which plans may be available, the time limit to which those circumstances are linked and the maximum amount available.
1. They may apply to take effect of their consolidated rights in the cases of the twentieth additional provision of Royal Decree-Law 11/2020 of 31 March, the participants in the pension schemes of the individual and associated system, and the participants in the pension schemes of the defined or mixed contribution employment system for those contingencies defined under defined contribution.
Participants in the pension scheme of the employment system of the defined or mixed mode of benefit may also provide, for those contingencies defined under or linked to the defined benefit, of the consolidated rights if they are affected by aRTE, the suspension of openness to the public of establishments or the cessation of activity , arising from the situation of health crisis caused by COVID-19, where permitted by the pension commitment and provided for by the plan specifications approved by its control committee under the conditions established by them.
2. The concurrence of the circumstances referred to in paragraph 1 of the twentieth additional provision of Royal Decree-Law 11/2020 shall be established by the pension plan participant applying for the provision by submitting the following documents to the pension fund managing entity:
- a) In the event that the participant is affected by a temporary employment regulation (ERTE) dossier arising from the situation of health crisis caused by COVID-19, the company’s certificate proving that the participant has been affected by the ERTE shall be presented, indicating the effects of the same on the employment relationship for the participant.
- b) In the event that he is the business owner of the establishment whose opening to the public has been suspended as a result of Article 10 of Royal Decree 463/2020, of 14 March, a declaration shall be submitted to the shareholder liable that the shareholder complies with the requirements laid down in paragraph 1(b) of the twentieth additional provision of Royal Decree-Law 11/2020 of 31 March in order to implement his consolidated rights.
- c) In the event that he is self-employed who had previously been integrated into a Social Security scheme as such, or in a mutual scheme alternative to it and ceased his activity during the state of alarm decreed by the Government by COVID-19, the certificate issued by the State Agency of the Tax Administration or the competent body of the Autonomous Community shall be presented , where appropriate, on the basis of the declaration of cessation of activity declared by the person concerned.
- (d) If the applicant is unable to provide any of the required documents, he may replace it by means of a responsible declaration including the express justification for the reasons relating to the consequences of the COVID-19 crisis, which prevent him from such a contribution. Upon completion of the alarm status and its extensions, you will have one month to provide the documents you have not provided.
3. The amount of bound duties available shall be that justified by the shareholder to the pension fund management entity, with the maximum limit of the lesser of the following two amounts for the set of pension schemes of which it holds:
1st. Depending on the case in paragraph 1 of the twentieth additional provision of Royal Decree-Law 11/2020 of 31 March:
- a) in the event of the participant affected by aRTE arising from the health crisis situation caused by COVID-19: net wages no longer received as long as the ERTE remains valid, with a maximum calculation period equal to the validity of the alarm status plus an additional month, justified by the last payroll prior to this situation;
- b) in the case of an employer holding establishment whose opening to the public has been suspended as a result of Article 10 of Royal Decree 463/2020 of 14 March: estimated net income which has ceased to be received due to the suspension of openness to the public, with a maximum calculation period equal to the validity of the alarm status plus an additional month, justified by the filing of the annual income tax return of individuals for the previous financial year and, where appropriate, the split payment of Personal Income Tax and the self-assessments of value added tax for the last quarter;
- c) in the case of self-employed workers who had previously been integrated into or in a system of mutualism alternative to it, and have ceased their activity as a result of the state of alarm decreed by the Government: net income that has ceased to be received as a result of the cessation of activity during a maximum period of calculation equal to the validity of the alarm state plus an additional month, estimated by the annual declaration of Personal Income Tax for the previous financial year and, where appropriate, the split payment of Personal Income Tax and the self-assessments of Value Added Tax for the last quarter.
In the case of paragraphs b) and (c), the applicant shall also provide a responsible declaration quantificing the monthly amount of income reduction.
2nd. The result of apportioning the annual Public Multi-Effects Income Indicator (IPREM) for 12 payouts in force for the 2020 financial year multiplied by three in the proportion corresponding to the period of duration of the ERTE, the period of suspension of the opening to the public of the establishment or the period of cessation of activity, according to, respectively, corresponds to each of the cases referred to in the paragraphs (a), b) and (c) paragraph 1 of the twentieth additional provision of Royal Decree-Law 11/2020 of 31 March. In any case, in all three cases the maximum time period to be computed is the validity of the alarm state plus an additional month.
4. The participant shall be responsible for the veracity of the documentation accreditation of the event of the event of fact required to apply for the benefit, as well as for the accuracy in the quantification of the amount to be received.
5. The refund shall be made within a maximum period of seven working days after the participant submits the complete supporting documentation. In the case of pension schemes in the type of employment, this period shall be extended to thirty working days from the time the participant submits the complete supporting documentation.
6. The provisions of this provision shall also apply to insured persons of insured pension plans, business social security plans and social security mutual funds referred to in Article 51 of Law 35/2006 of 28 November on the Income Tax of Natural Persons. In these cases, references made in the previous paragraphs to managing entities, shareholders and pension plan specifications shall be construed as referring to insurers, insured or mutual insurers, and insurance policies or benefit regulations, respectively. In the case of social security mutual funds acting as an alternative system to discharge into the Special System of Social Security of Self-Employed or Self-Employed Workers, the economic rights of the products or insurance used to fulfil that alternative function may not be enforced.
7. The above paragraphs define the cases and conditions under which the exceptional power to settle the bound rights provided for in the twentieth additional provision of Royal Decree-Law 11/2020 of 31 March may be effective. As not provided for in those paragraphs, the latter twentieth additional provision remains in force.
8. The amounts and documentation referred to in the previous paragraphs may be amended by Royal Decree, in accordance with paragraph 3 of the twentieth additional provision of Royal Decree-Law 11/2020 of 31 March.
7. Extension of certain time limits for tax provisions
The extension of certain time limits until 30 April or until 20 May 2020, as set out in Article 33 of DR-Law 8/2020 and in additional provisions 8th and 9th of DR-Law 11/2020, is transferred to 30 May.
In summary, within the scope of the State Tax Administration, the CCAAs and the Local Entities, this means the following:
- Term of payment of debts settled by the Administration, both voluntarily and in apprehended, that have been notified before or after March 14: the maturity becomes May 30, unless the communiqué expires after that date.
- Expiration of the deadlines for deferral agreements communicated before or after March 14: the term of the deadline will be May 30, unless the notice expires after that date.
- Deadlines for making allegations, meeting requirements, etc., communicated before or after March 14: the term of the deadline will be May 30, unless the communication expires after that date.
- The Administration may not execute guarantees that fall on real estate between 14 March and 30 May
- For the maximum period of time of the procedures for the application of taxes, sanctioners and review procedures, the period from 14 March to 30 May shall not be calculated.
- Limitation and expiry periods are suspended between 14 March and 30 May.
- The period between 14 March and 30 May is not calculated within the maximum period for implementing economic-administrative decisions.
- The time limit for appealing for replenishment or recourse or claiming in an economic-administrative procedure will begin from 30 May.
- May 30 will be the maximum deadline to meet requests or requests for information made by the Directorate-General of the Catastro, as well as to submit claims, whether the communication has been received before or after 14 March, unless the deadline communicated expires after that date.
- The deadlines related to the development of auctions and the award of goods also extend to 30 May and, in addition, the exercise of rights by tenderers and successful tenderers is adapted in the disposal procedures developed by the EAAT to the extension of deadlines, so that the tenderer may request the annulment of its bids and the release of the deposits constituted and , where appropriate, in addition, the price of the auction entered, provided that, as regards the successful tenderers, no certification of the act of award of the goods or the granting of public deeds of sale had been issued.
8. Cancellation of bids and return of deposits and auction prices entered at auctions
The suspension of time limits in the tax field contained in Royal Decree-Law 8/2020 is amended to adapt the exercise of rights by tenderers and successful tenderers in the disposal procedures developed by the AEAT to the extension of time limits affecting those procedures, preciating that:
- In the auctions held by AEAT, through the Auction Portal of the State Agency of the BOE, the bidder may request the cancellation of their bids and the release of the deposits constituted.
- Bidders and bidders of auctions at which the bid submission phase has ended and provided that certification of the award of the goods or public deed of sale has not been issued have also been entitled to a refund of the deposit and, where appropriate, the price of the auction entered at the request of the tenderer and the price of the auction has been issued. In this case, the deposit amount will not be forfeited.
If you have any questions or need any clarification on these new tax measures approved in RDL 15/2020, you can contact
any of our advisors so we can help you.