Tax Advisory Spain: Navarra approves new measures that affect tax advice

The tax advice of the Corporation Tax could suppose a double declaration

On June 23rd, Navarra published in its Official Gazette the Provincial Decree-Law 6/2020 which approves new tax measures. The purpose of this new regulation is to face the health crisis caused by COVID-19.

Among the most important measures it is worth highlighting the modifications in the Corporation Tax (IS). In the first place, the territory of Navarre has approved a new regime for the presentation of the exercises begun in 2019. This measure will be applicable to those taxpayers who have not approved the annual accounts at the end of the ordinary declaration period.

In the event that the annual accounts presented are those available, they will correspond to the following criteria:

  • For listed corporations, the audited annual accounts referred to in article 41.1.a) of the aforementioned Royal Decree-Law 8/2020.
  • For the rest of taxpayers: The audited annual accounts. Failing that, the annual accounts prepared by the corresponding body.
  • In the absence of the above, the available accounting carried out in accordance with the provisions of the Commercial Code or with the provisions of the regulations that govern.

Once this first settlement has been presented, the taxpayer must submit a second one until November 30th, 2020. The latter will follow the following instructions:

  • If a higher amount to pay or less to return than the first self-assessment results from it, no interest will be charged for late payment or late filing surcharges on the corresponding income.
  • If the result is to be returned, the default interest will accrue from the date of submission of the second self-assessment.

Regarding the deduction of this tax, the following criteria are introduced:

  • New deduction for the digital transformation of small companies, which will amount to 30% of expenses and investments made in 2020.
  • The maximum deduction base amounts to 5,000 euros.
  • This deduction will be applied without limit on the tax fee.
  • With effect for tax periods beginning on or after January 1st, 2020, the deduction for investments in renewable energy facilities will be applied with no quota limit.

On the other hand, the Personal Income Tax (IRPF) has also undergone a series of modifications:

  • The deduction for the care of descendants, ancestors, other relatives and disabled people is increased to 100% of the amounts paid for Social Security contributions associated with contracts formalized with family household workers caring for those people.
  • The deduction for the aforementioned digital transformation is introduced. This deduction will be applicable by taxpayers who carry out economic activities and determine the net return on their activity under the direct estimation regime.
  • The electricity and natural gas marketers and the distribution of manufactured gases and liquefied petroleum gases by pipeline are exempt from VAT and, where appropriate, from the Special Tax on Electricity and the Special Tax on Hydrocarbons. The suspension will take effect until the consumer has paid the invoices in full, or six months have passed since the end of the alarm state.

Regarding the Foral General Tax Law:

  • He publicity of the lists of defaulters in which the requirements established by the General Tax Law are delayed at December 31st, 2019.
  • Will occur before October 1st, 2020 instead of during the first semester of 2020.
  • The development of tax procedures and, in particular, tax inspections is allowed, by electronic means

Another of the modified taxes is the Tax on Transfer of Assets and Documented Legal Acts (TPAJD). The new regulations have introduced the exemption from the tax on formal deeds:

  • Of the moratoriums provided for in article 13.3 of Royal Decree-Law 8/2020 and in article 24.2 of Royal Decree-Law 11/2020.
  • Conventional moratoriums referred to in article 7 of Royal Decree-Law 19/2020.

Finally, it is worth noting some modifications in other types of tax measures:

  • The deadline for foundations to present their accounting documentation to the Hacienda Foral de Navarra is extended until November 30th, 2020.
  • The benefits for contingencies of illness and death due to COVID-19 will be exempt from the Inheritance and Donations Tax and the Personal Income Tax.

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Etiquetas: Spain tax advice, Tax measures, Official Gazette of Navarra, Provincial Decree-Law, Madrid tax adviser