Update C19: Deferral of taxes for SMEs

The Spanish Government announced new measures to meet the needs of companies with financial problems. We will list the most important ones.

Deferral of taxes for SMEs

Payments of taxes for which declarations have to be submitted between 1 April and 30 April 2021 may, under certain conditions, be postponed for 6 months. This applies to wage and professional taxes, VAT and (interim) corporation tax.

The measure only applies to SMEs. In order to benefit from the deferral, it is in fact a requirement that the turnover in 2020 should not exceed € 6 million (exactly: € 6,010,121.04).

For tax amounts of up to € 30,000, deferral can be requested without providing guarantees. For deferrals in excess of € 30 000, guarantees must be given to the tax authorities.

No default interest will be charged during the first 3 months of the deferral.

Retail, tourism and hospitality | Business rentals

>>> Independent entrepreneurs (autónomos) and SMEs (PYMES) who rent their business premises from public rental organisations or “large landlords” (owners who operate a minimum of 10 rental properties or rent a total of more than 1,500m2 of business premises) and who had not yet reached an agreement on a rent reduction or postponement, now have 2 options:

  • Requesting for a rent reduction of 50% until the end of the state of emergency (09/05/21), which may be extended in the event of the state of emergency being extended and up to a maximum of 4 months thereafter.
  • Requesting for an interest-free postponement of the rent due until the end of the state of emergency, plus any extensions and up to a maximum of 4 months thereafter. By mutual agreement, this rent must be repaid in the following 2 years.

>>> The request can be submitted to the landlord until 31 January 2021 at the latest and the landlord must reply within 7 working days.

>>> The tenant must be able to prove that the business activity was suspended as a result of the state of emergency or that the turnover in the month prior to the request was at least 75% lower than the average monthly turnover of the quarter to which this month belongs in the previous year.

Deductibility of credit deterioration due to non-payment

For the years 2020 and 2021, the period that must elapse from the due date of a receivable or an invoice for the impairment recorded to be deductible is reduced from six to three months.

This measure applies only to companies with a turnover of less than € 10 million in the previous financial year.


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