Royal Decree-Law 19/2020, of 26 May, includes several complementary measures on agricultural, scientific, economic, employment and tax matters. In relation to the measures in the tax area, it is worth highlighting one related to the deferral of taxes for the self-employed and SMEs.

Deferment of tax debts
Tax deferral without interest on late payment is extended from 3 to 4 months for the self-employed and SMEs.

What are the conditions of the deferment? The deadline for paying tax debts will continue to be 6 months in total (upon request), but the novelty introduced by this decree is that during the first 4 months of the deferral will not have to pay interest for late payment. In other words, more than half of the total deferral period will not bear any interest surcharge for these taxpayers.

This measure does not prevent a taxpayer from paying their tax debts before the 6 month deadline if they have sufficient liquidity to pay the debt.

Who can request the deferral of tax debts?
Self-employed and SMEs (individuals or entities) with a turnover of no more than 6,010,121.04 euros in 2019.

What tax debts can be deferred?
It is possible to defer payment of the debt for all tax returns and self-assessments filed between 13 March and 30 May 2020 (up to 30,000 euros).

Applications submitted by that date must always meet the requirements referred to in Article 82.2. a) of the General Tax Law.

The regulation clarifies that this deferral of 6 months will also be applicable to these tax debts:

Those corresponding to tax obligations to be fulfilled by the withholder or the person obliged to make payments on account. (RETENTIONS). Forms 111, 115, 123…

Those derived from taxes that must be legally passed on unless it is duly justified that the amounts passed on have not been effectively paid. (mainly VAT) Form 303

Those corresponding to tax obligations that must be fulfilled by the person obliged to make payments in instalments of Corporate Income Tax. (Instalments). Model 202