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.
The tax measures addressing the current COVID-19 situation are included in Decree Law 10-F/2020 of 26 March 2020 and other ad-hoc ministerial orders. We provide below an outline of those tax measures.
In view of the cash pressures that the current state of emergency may create, it is advisable to bring forward analysis of returns to file them as soon as possible (if a refund of tax is due) and evaluate, in any case all potential tax benefits to be applied.
The Monthly Stamp Tax Declaration (“DMIS”), as well as assessment and payment obligations, are subject to changes within the scope of the implementation of extraordinary and urgent measures in response to the epidemiological situation originated by the new coronavirus (COVID-19), as disclosed by Order no. 121/2020-XXII, of 24 March, of the Secretary of State for Tax Affairs.
Form “Modelo 30” was updated by Ordinance no. 78/2020, of 20 March in order to allow the fulfillment of the international commitments assumed by Portugal regarding administrative cooperation in the field of taxation.
Once again this year, personal income taxpayers and corporate income taxpayers who owned assets and rights situated abroad on December 31, 2019 could be under the obligation to file the informational return on assets and rights situated abroad (form 720) prior to March 31, 2020.