By Royal Decree-Law 7/2020, of 12 March, which adopts urgent measures to respond to the economic impact of the COVID-19, the Spanish Government launches the first package of measures to help, among others, companies and self-employed individuals. Chapter IV of the legislative text contains transitional financial support measures, including the deferral of tax liabilities (Article 14).
In this regard, provision is made for the deferral of the tax debt corresponding to all declarations-settlements and self-liquidations for which the period of filing and receipt expires from the date of entry into force of this Royal Decree-until and including 30 May 2020, provided that applications submitted to that date meet the requirements of Article 82(2)(a) of Law 58/2003 of 17 December, General Tributary.

In order to be granted with the deferral it will be necessary that the debtor is a person or entity with a volume of transactions not exceeding EUR 6,010,121.04 in the year 2019. Therefore, the largest companies will not be able to benefit from such deferrals. The deferral would be limited up to €30,000. The deferral shall be for a maximum of six months, the first three being lack of interest. After 6 months, the amount of the deferral shall be made in a single payment.

In order to deal with the deferral request, we must take into account, if there are previous deferrals, the outstanding amount of the deferrals, since the sum of the existing deferrals together with the request for further deferrals may not exceed the amount of € 30,000.

The taxes that may be deferred are:
 Value Added Tax
 Withholding taxes and income on account
 Payment by instalment Corporation Tax

According to what is published by the Spanish Tax Office for the request for deferral the following requirements must be followed:
1. In addition to the holder himself, it may be requested by a third party acting on his behalf, being it a social collaborator or a proxy to carry out the procedure.

2. Submit by normal procedures the self-assessment showing the amounts to be paid which the taxpayer wishes to defer, marking, as with any postponement, the option "debt recognition".

3. Access to the "Submit Application" procedure, within the deferral section of the AEAT’s website.

4. Fill in the application fields. Applicants seeking to benefit from the flexibilisation provided for in the Royal Decree-Law should pay particular attention to the following areas:

o "Type of guarantees offered": tick the option "Exemption"
o "Proposal for time limits", number of deadlines: enter the number "1"
o "Periodicity": tick the option "Not applicable"
o "Date first term": the date corresponding to a period of 6 months from the date of the end of the dinary deadline for the submission of the reverse charge must be entered (for example, the monthly VAT self-assessment MOD
303 in February expires on 30 March, so the date to be included would be 30-09-2020).

o VERY IMPORTANT: In addition, in the field "Reason for request" the expression "RDL postponement" should be included. Incorporating this wording in the text field is of particular importance for the correct processing
of the application while the AEAT develops a definitive procedure during the period in which the Royal Decree takes effect.

5. Submit the application by pressing the"Sign and Send" icon .This document has been written on 16 March 2020 at 12 noon. Under the circumstances, changes may occur over the next few hours and days. We will keep you informed.

Sincerely.
AUDITIA