COVID-19: The current Spanish tax legislation at a glance
Over the past few days, the Spanish government has issued a number of regulations to manage the impact of the State of Emergency over current Spanish legal and tax proceedings. We would highlight the following, of specific interest to Private Wealth clients:
- Provisions to defer certain tax debts to certain taxpayers (including individuals) for up to € 30,000 and for a period of up to six months (no interest on overdue tax would be levied during the first three months), for Spanish tax returns with a deadline for submission between 13 March and 30 May 2020. This deferment requires a prior specific request by the taxpayer.
- With some minor exceptions, provisions to suspend all deadlines for legal and administrative proceedings of a non-tax nature for the duration of the State of Emergency.
- Provisions not to compute time elapsed during the duration of the State of Emergency for the purposes of calculating the date of application of the statute of limitations.
- Provisions to defer until 30 April 2020 the obligation to settle due and payable tax debts as at 18 March 2020 (including deferred tax debts and foreclosures by reason of tax debts) arising from assessments previously raised by the Spanish tax administration (eg by reason of a tax audit, pending surcharges, penalties etc).
- Provisions to defer until 30 April 2020 the obligation by taxpayers to respond to queries raised by the tax administration outstanding as at 18 March 2020. Taxpayers nevertheless have the option to submit responses during the deferment period.
- Provisions to defer until 20 May 2020 the obligation to settle due and payable tax debts arising from assessments raised by the Spanish tax administration (eg by reason of a tax audit, surcharges, penalties etc) after 18 March 2020.
- Provisions to defer until 20 May 2020 the obligation by taxpayers to respond to queries or the submission of first appeals against assessments raised by the tax administration received after 18 March 2020 (or later if by application of standard procedures).
- At present, these deferment and suspension provisions do not apply to deadlines for submission of personal tax returns. Therefore:
- Foreign Asset Information Returns (Form 720) are still due to be submitted on or before 31 March 2020.
- Income Tax and Wealth Tax returns will need to be submitted on or before 30 June 2020.
- Gift Tax returns must be submitted within 30 working days from the date of the gift.
- Inheritance Tax returns must be submitted within six months from the date of demise (with specific deferment provisions for an additional six month period). Requests for extensions must still be filed before the end of the fifth month after the demise.
- In addition, there are several other regional and municipal extraordinary provisions dealing with the impact of COVID-19 on certain regional and municipal taxes.
The situation is nevertheless fluid, so further provisions adding, modifying or extending the above, including introducing further revised deadlines, are likely to be enacted in the short term.
Javier Estella Lana
Patricia García Mediero
Gabriel Pérez de Cárdenas