Tuesday, 31 March 2020

ACCESS TO TAX DATA & DEADLINE FOR INCOME TAX DECLARATION 2019



The Spanish Official State Gazette has recently published the Ministerial Decree HAC/253/2020, of March 3rd, which, among others, approves new Income Tax declaration forms, terms and form of presentation of these declarations and the procedures to obtain and confirm tax information. 
 
The deadline for the submission of Income Tax[1] and Capital Gains Tax returns[2] corresponding to fiscal year 2019 starts on April 1st of 2020 and ends on June 30th of 2020, except in case of payment by direct debit of the entire amount or of both installments (in which the deadline ends on June 25th of 2020).

It is important to remember that the state of alarm does not affect the deadlines for submission of Income Tax and Capital Gains Tax returns (Royal Decree 465/2020, of March 17th).

The new forms simplify the identification of tax residence, the declaration of capital property income and economic activities in direct declaration (which are now declared in a single section), the process of tax refund, by means of an annex “D”, in which taxpayers can identify the fiscal identification number of their suppliers.

To obtain the reference number, taxpayers must use the amount in box 505 of the 2018 return.



[1] Forms D100, 100 & 102
[2] Form D714 & 714




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Monday, 30 March 2020

DEFERMENT OF TAX PAYMENTS DUE TO COVID-19



One of the foremost measures established by the Spanish Government by Royal Decree Law 7/2020, of March 12th, of urgent measures to face the economic impact produced by COVID-19, is the possibility of deferring payments of taxes corresponding to the first quarter 2020. This postponement can be carried out for a period of up to 6 months, though the debt is only exempt of interests during the first 3 months of deferment.
This deferment can be requested by all Spanish companies and freelancers who meet the following requirements:
  • Having a turnover of less than 6.000.000€
  • The amount of the debt does not exceed 30.000€
  • The request must be made before May 30th 2020.


HOW TO REQUEST THE DEFERMENT

The application is made under a simplified self-assessment procedure, with prior recognition of the amount to be paid, in the following web site of the Spanish Tax Office:
https://www.agenciatributaria.gob.es/AEAT.sede/Inicio/Inicio.shtml
Press the option “aplazamiento y fraccionamiento de deudas/presentar solicitud”. You will need a digital certificate or a 24-hour PIN.


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EXPIRED CERTIFICATES ARE TEMPORARILY VALID



In accordance to Royal Decree 463/2020, of March 14th, those taxpayers whose digital certificate has expired are allowed to use the expired certificate within the alarm state.

In case the usual browser did not accept the expired certificate, the Spanish Tax Office recommends to install it in MOZILLA FIREFOX.


For further information, you can call any of the following telephone numbers:
901 200 347 or 91 757 57 77
 
 
 
 
 

Sunday, 22 March 2020

STATE OF ALARM WILL BE EXTENDED FOR 15 ADDITIONAL DAYS



The Spanish Chief Executive has reported to the Regional Presidents this Sunday that the state of alarm has to be extended until April 12th.
This extension is not official yet, since it has to be confirmed by the Congress of Deputies, according to the sixth article of the Organic Law No. 4/1981, of June 1st, regulating the states of alarm, emergency and siege, pursuant to article 116 of the Spanish Constitution.
This decision is consistent with article fourth b) of the aforementioned law, which empowers the Government to declare a state of alarm in all or part of the national territory in case of health crisis which seriously alters normality, such as an epidemic or serious contamination.
The Congress of Deputies is scheduled to meet in plenary session on Wednesday 25th of March 2020. 
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Sunday, 9 February 2020

HOW TO MODIFY COMPANY BYLAWS

 
 
According to Chapter I, Title I of Spanish Capital Companies Act (R.D.L. 1/2010, of July 2nd), to modify company bylaws, it is necessary:
1.       A proposal for modification (carried out by the administrators or the partners).
2.       Convene a General Shareholder’s Meeting.
3.       Approve the Agreement to modify the bylaws.
4.       Record the modification agreement in a public deed.
5.       Register the deed of modification in the Trade Registry.
6.       Publish the agreement in the Official Gazette of the Trade Registry.
The Trade Registry itself is responsible for publishing the agreement in the Official Gazette: the entity will only have to pay for the correspondent fees.
There is one exception to the need of agreement in a General Meeting: change of the company’s Registered Office within Spain. In this case, according to article No. 285 of the Capital Companies Act, the agreement can be taken directly by the administrators, unless company bylaws had provided otherwise.
An Extraordinary General Meeting can be constituted:
1.       without prior notice when all capital is present or represented and the partners accepted unanimously holding the meeting, or
2.       with prior notice of, at least, 15 days in advance (in case of limited companies)
The agreement needs of a reinforced legal majority, consistant of half plus one, in case of limited companies, and the absolute majority of the capital presented or represented in the General Meeting (provided that the capital presented or represented was, at least, 50% on first call and 25% on second call).
 
 

Thursday, 6 February 2020

THE SPANISH TAX OFFICE CHECKS THE PAST OF NEW BUSINESSES










The Spanish Tax Office will promote prior review of reprehensive behaviour of new entities. The purpose of this review is to prevent future tax fraud and will be carried out within the campaign called “right from the start”, scheduled for the current year.

The Annual Control Plan affects measures of transparency of information and assistance to taxpayers in the compliance of tax obligations, particularly census obligations.  

Companies included in Immediate Information Supply that have a turnover below € 6,000,000 will receive a VAT draft declaration, which will make it easier for them to declare Corporate Tax.

Finally, Income Tax books will be compatible with VAT ones, thus reducing formal obligations of the taxpayer.



Tuesday, 4 February 2020

WITHHOLDING OF DIVIDENDS PAID TO A SPANISH LIMITED COMPANY




Is it necessary to withhold on dividends paid by a Spanish limited company, when the receiver of these dividends is another Spanish company?

The answer will depend on the percentage of ownership (or the value of the participation) and the time the participations have been held in the capital of the investor.

  1.  If the participations represent a percentage which is greater than 5% (or they have a value greater than €20.000.000) and they have been held in the investor’s equity, at least ONE year before the collection of dividends (or if they are going to be held for the remaining time), OR if both companies belong to a fiscal group, the dividends are NOT subject to withholding (Art. 128.4.d. LIS u. 61 RIS).
  2. Otherwise, dividends are subject to 19% withholding, which must be declared using a form 123.




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