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The BOE has published Royal Decree-Law 20/21, of October 5, to help repair the damage caused by volcanic eruptions

The island of La Palma has been declared as “Area seriously affected by a civil protection emergency” after the material damage caused by the volcanic eruptions. For this reason, the decision has been taken to promote a package of extraordinary measures of various kinds to try to alleviate the consequences of this phenomenon. Royal Decree-Law 20/2021, of October 5, has been published in the BOE, in which the urgent measures are collected, which have come into force on the same day of their publication.

Fiscal benefits

The exemption of the Real Estate Tax corresponding to the year 2021 that affect the properties damaged as a direct consequence of the eruption of the volcano is established.

Tax on Economic Activities: A reduction in the quota corresponding to the year 2021 is granted to industries of any nature, commercial, maritime-fishing, tourist and professional establishments whose assets related to that activity have been damaged.

Special tax reductions for agricultural activities

The head of the Ministry of Finance may authorize, exceptionally, the reduction of the net return indices, by which, for the year 2021, the objective estimation method of the Personal Income Tax and the special simplified regime of Value Added Tax. The farms and agricultural activities in which damage has been produced will be able to benefit from these tax reductions.

Postponement of tax debts

The income of the tax debt corresponding to returns-settlements and self-assessments whose filing period is between October 7, 2021 until January 31, 2022 will be deferred. Debts must be less than 30,000 euros and corresponding to withholdings and income on account, VAT and installment payments of Corporation Tax.

Tax deductions for the recovery of the cultural heritage of the island of La Palma

During the year 2021, the recovery of the Cultural Heritage of the island of La Palma will be considered a priority patronage activity.

Cadastral measures

Real estate located in municipalities directly affected by volcanic eruptions will be exempt from the cadastral accreditation fee. In addition, a service to the public in cadastral matters will be set up on the island of La Palma.

Extraordinary bonus on regional incentives

Business investments on the island will be boosted by applying an additional bonus of five percentage points on the percentage resulting from their qualification.

Exemption in ITP and AJD of loan default deeds

The exemption is established in the Tax on Patrimonial Transmissions and Documented Legal Acts for the deeds of formalization of the moratoriums of loans and mortgage credits or without mortgage guarantee.

Exceptional availability of consolidated pension plan rights

Participants in pension plans may redeem their consolidated rights within a period of nine months when they are owners of farms or establishments affected by the volcanic eruption or are self-employed workers who have been forced to suspend or cease activity due to the situation. People affected by employment regulation files (ERTE) or in the event of loss of their habitual residence may also benefit.

 

B Law & Tax International Tax & Legal Advisors.

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“En B LAW&TAX somos especialistas en asesoramiento fiscal internacional tanto a empresas como para particulares. Si desea ampliar la presente información, estaremos encantados de poder atenderle en el 917817194 o en [email protected]

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