Business and Covid-19 in Spain

Managing and administrative bodies of business and civil legal entities may as an exception in 2021 hold meetings by phone or remotely or take action by written consent without holding a meeting, even where not expressly permitted by their bylaws.

The Official State Bulletin of December 23, 2020 carried notice of Royal Decree-Law 35/2020, of December 22, 2020, on urgent measures to support the tourism and hotel industries and trade and in relation to tax matters (RDL 35/2020), articles 1 through 6 of which include certain measures affecting non-residential lease agreements.

Royal Decree-Law 34/2020, of November 17, 2020, on urgent measures to support business solvency and the energy sector, and on tax matters (RDL 34/2020), published in the Official State Gazette (BOE) on 18 November 2020, further extends the term for the granting of ICO guarantee facilities relating to commercial paper notes traded on the Spanish Alternative Fixed Income Market (MARF) and introduces amendments to the Spanish Securities Market Law.

The November 18, 2020 edition of the Official State Gazette (BOE) published Royal Decree-Law 34/2020, of November 17, 2020, on urgent measures to support the solvency of businesses and support the energy sector, as well as in the tax field. Approved measures include an extension until December 31, 2021 of remote attendance at meetings of the corporate bodies of capital companies (defined as all those governed by Legislative Royal Decree 1/2010, of July 2, 2010), civil-law partnerships (sociedad civil), cooperative companies, associations and foundations.

Preparation of financial statements and corporate income tax, recommencement of time periods, remote trials, gradual return to workplaces, insolvency proceedings and compliance with criminal law

New guarantee facility, extension of ERTE temporary layoff procedures, effects of the crisis on transfer pricing, return to judicial activity and ‘shields’ for businesses.

El pasado 9 de mayo de 2020 el BOE recogió la Resolución de 6 de mayo de 2020, de la Secretaría de Estado de Economía y Apoyo a la Empresa, por la que se publicó el Acuerdo del Consejo de Ministros de 5 de mayo de 2020 que estableció los términos y condiciones del tercer tramo de la línea de avales a préstamos concedidos a empresas y autónomos, a los pagarés incorporados al Mercado Alternativo de Renta Fija (MARF) y a los reavales concedidos por la Compañía Española de Reafianzamiento, SME, Sociedad Anónima (CERSA).

Phase 1 of the ‘scaling-down’ process, third tranche of guarantees, extension of ERTE temporary layoffs, potential delay in the application of VAT directives and of DAC6, and measures to support the cultural sector

Royal Decree 494/2020, of April 28, 2020, amends the system of control of foreign trade and, among other measures, provides the Inter-ministerial Regulatory Board on Foreign Trade in Defense and Dual Use Goods (JIMDDU) with greater functions, having the authority also to establish, on an exceptional basis, mechanisms for verification, monitoring and cooperation in relation to goods exported in certain transactions even with the involvement of the government of the importing country.

Reopening to the public of establishments, effects of RDL 16/2020 on procedural, insolvency and tax matters, labor measures in preparation for de-escalation and news on administrative procedures

Critical plans for a return to activity, taxes on the renegotiation of loans, notification of judicial decisions, and doubts regarding leases

Below we summarize some of the specific measures adopted in relation to medical devices by the main European and Spanish authorities. These measures are part of the set of new pieces of legislation affecting the pharmaceutical and healthcare industry as a result of the crisis caused by the impact of the COVID-19 virus, which are being analyzed by the firm.

For another week running, Garrigues examines the key legal issues that companies should be aware of to continue forward in the current context. 

The situation created by the spread of COVID-19 requires an analysis of the new legislation from all angles of business law. For another week running, Garrigues summarizes the key new legislation that companies need to be aware of over the coming days. This week, the labor landscape features the return to non-essential activities, together with a few new measures such as deferred payment of social security contributions or the ability to combine agricultural activity with unemployment subsidies and benefits. In the tax field, besides paying close attention to new tax legislation in Spain and elsewhere, there other elements needing to be considered such as the issue of renegotiating commercial lease agreements which may trigger tax costs. In relation to administrative law, businesses need to keep sight of the new legislation on administrative and procedural time periods. And on the subject of litigation and arbitration, this week we look at how COVID-19 will impact international contracts, and the opportunity provided by mediation as an alternative route for dispute resolution in the current context.

The Spanish Accounting and Audit Institute (ICAC - Instituto de Contabilidad y Auditoría) replied, on April 2, 2020, to the request for an audit determination on the effect of the public health crisis and Royal Decree-Law 8/2020, of March 17, 2020 (on urgent extraordinary measures to confront the economic and social impact of COVID-19) in relation to the preparation, verification and approval process for the financial statements (RDL), and its amendment by final provision one, point thirteen, of Royal Decree-Law 11/2020, of March 31, 2020 (RDL 11/2020).

We analyze the measures introduced by Royal Decree-Law 11/2020, from every angle of business law: corporate/commercial contracts, tax, labor and employment, restructuring and insolvency, procedures and administrative law.

The toughening of lockdown measures in Spain and resulting closure of all business activities not classed as essential makes it absolutely necessary to keep very much in sight this week the measures approved in the labor and employment field. In the domain of corporate law and commercial contracts, the decision governing the first tranche of guarantees to soften the economic effects of the crisis has already been published in the Spanish Official State Gazette (BOE). As for tax matters, the personal income tax and wealth tax season is about to start. In the litigation arena, the general statute of limitations for personal action has been extended. And there are also important mobility and transport, and  restructuring and insolvency issues  and matters related to administrative law.

In the context of the extraordinary situation stemming from the COVID-19 health crisis, the Spanish Registrars’ Association and the Spanish National Securities Market Commission (CNMV) issued a joint statement on March 26, 2020, in which they consider that, as regards financial statements and the proposed allocation of profit/loss, companies may, among other alternatives, choose to proceed as follows:

Some of the measures adopted in recent weeks to tackle the economic and social impact of COVID-19 have special implications for the healthcare and pharmaceutical industry. In this article we analyze the key information that companies in this field need to take into account.

The March 18, 2020 edition of the Official State Gazette has published Royal Decree-Law 8/2020 of March 17, 2020 on urgent and extraordinary measures to confront the economic and social impact of COVID-19. The decree-law comes into force on its publication date, for a one-month term, and allows this term to be extended.