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April 2

CORONAVIRUS: WHAT ARE MY OBLIGATIONS TO PAY TAX DURING THE LOCKDOWN?

Advice for Owners, Coronavirus, Covid-19 Spain

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In this article I deal with your responsibility to pay taxes in Spain during the Coronavirus Lockdown.

There are some practical considerations regarding payments and also some extensions have been given by the government to delay payments. 

Your Responsibility to Pay taxes is Unchanged

Since 16 March, the public offices of the Agencia Tributaria and the regional treasuries have been temporarily closed, but this does not mean that the tax machine is at a standstill: 

If you have to submit or pay any of the taxes that you would normally have to pay, for example VAT and Income tax, your obligation to do so has not ceased, although the way you go about it may have changed and the deadlines may have been moved. 

For the time being, these are the most significant details that I have been able to find.

Your duty to file tax returns has not changed.

In general you need to assume that the deadlines for filing returns and self-assessments and for making the payments corresponding to them have not been suspended or interrupted.

La Renta

La Renta (Income tax)  still follows the same rules and timings as it always has. 

The window for reporting for the 2019 fiscal year, started on April 1 and ends on June 30. If you are planning to file your return in person there is still time to go and do so between the end of the current lockdown period and the end of the reporting period. 

If there is a futher extension to the lock down this may change and if that happen I will update this articel.

For practical reasons however some procedures have been given an extension. 

Firstly, If you had an obligation to present a tax before March 18 but were unable to do so becuase of the lockdown, the deadline has been extended to April 30.

If this obligation fell after the 18th March, the deadline is extended to 20 May.

This extension is automatic and there is no need to make an application. 

Here are some of the procedures that fall into that extension"

If you have to pay a tax debt as a result of a settlement made by the tax office and you had already been notified of the injunction then the deadline for payment is extended.

If you are paying a debt to the Agencia Tributaris in instalments and one of those instalments is due the deadline for it's payment is extended.

If the tax authorities have sent you a request, asked for information or issued you with a seizure order, the time limit for responding to it is extended.

If you you were in discussion with the tax authorities regarding the application of a tax, a sanction, a rebate, the rectification of an error, and you have to submit papers or request a hearing, the deadline is extended.

PYMES (SME's) and Autonomos 

SMEs and freelancers have been granted extensions on their tax payments but NOT automatically, ie. you have to make a formal request. 

If you are self-employed or have an SME and had to pay a tax debt (including IVA) between 13 March and 30 May, you now have six more months in which to do so

For the first three months there is no interest payable on the extended periods.  

However, If you wish to take advantage of this and defer your payment then you have to make an application following the instructions established by the Tax Office.

You can do so via their website (in English) by following this link:  

https://www.agenciatributaria.es/AEAT.internet/en_gb/Inicio/La_Agencia_Tributaria/Campanas/Campanas.shtml

Local Taxes. 

Municipal Taxes

There are also taxes applied by local municipalities, the most notable being IBI.

In my municipality IBI is paid in September and so there is no change to the rules however if your IBI is due very soon you will need to look for advice locally to find out what to do. The website of your local Ayuntamiento should give guidence.

Community Taxes

There are 17 autonomous communities in Spain and each has its own jurisdiction over some taxes, most notably taxes on the transfer of properties, either by purchase and sale or inheritance.

Here is some guidence to the areas most densely populated by English Speaking Ex-pats the Communidad Valenciana, Murcia and Andalucia. 

I appreciate that there may be people watching from other areas and so if you want information regarding a different location please let me know in the comments below. 

Communidad Valenciana

Ithe deadlines for the presentation and payment of self-assessment of taxes on property transfers and documented legal acts, as well as on inheritance and gifts are payable inline with the extensions I mentioned earlier for state taxes. So, If the obligation to present the tax in question had begun before March 18th, the deadline increases to April 30. If this obligation began after 18th March, the deadline is extended to 20 May.


Andalucia

In Andalusia, the deadlines for the presentation and payment of self-assessment of taxes on property transfers and documented legal acts, as well as on inheritance and gifts with the deadline being between 17 March and 30 May 2020, have been extended by three additional months

Murcia

The deadlines for presentation and payment of declarations and self-assessments of taxes managed by the Tax Office of the Region of Murcia (Tax on Property Transfers, Inheritance and Donations are suspended.

Unfortunately I have no information on when they will become due however we can be sure that they will and I will update this article when more clarity is given


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