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Spain – COVID-19: Extension of Filing and Payment Deadlines for Certain Taxpayers

Spain – Extension of Filing & Payment Deadlines

Spain’s government has modified some filing/submission deadlines for certain taxpayers. This extension applies to numerous filings, including quarterly Nonresident Income Tax returns (Form 210). For taxpayers that elected the direct debit payment method, their submission deadline has been extended to 15 May 2020 (it was initially due by 15 April) and the charge to the taxpayer’s bank account will be made on 20 May 2020.

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The Spanish government approved, through Royal Decree-Law 14/2020 of 14 April, the extension to 20 May 2020, of the filing and payment deadlines of the state’s assessments and self-assessments that were due between 15 April and 20 May 2020, for individuals and entities with a volume of business not exceeding €600,000 in 2019.1

This measure is not applicable to those company groups that are taxed under the consolidation method for Corporate Income Tax or Value Added Tax purposes, regardless of their volume of business.

For taxpayers that elected the direct debit payment method, the submission deadline has been extended to 15 May 2020 (it was initially due by 15 April) and the charge to the taxpayer’s bank account will be made on 20 May 2020.

This extension applies to numerous filings, including withholding tax returns (Forms 111 and 216), VAT returns, and advance instalments/prepayments of Corporate Income Tax and Personal Income Tax, that were due in April for those individuals and companies meeting the above-mentioned volume of business in 2019.

WHY THIS MATTERS

This extension to deadlines applies not only to the taxpayers described above, but also to quarterly Nonresident Income Tax returns (Form 210) that had to be filed by nonresident individuals, including inbound or outbound assignees with nonresident status, to report certain types of income (for example, rental income from real estate property) received during the first quarter of 2020.

The Royal Decree-Law’s measures should offer certain individual and business taxpayers opportunities to preserve their cash-flow and provide additional time to organise their tax and financial affairs and meet their compliance obligations in this difficult period.

KPMG NOTE

The government only approved the measure on 14 April.  This means that many nonresident taxpayers who had elected the option of direct debit tax payment had already prepared and filed the applicable returns by that original due date of 15 April.

Individuals who had already filed the nonresident Form 210 by 15 April and were expecting to see the charge in their bank accounts by 20 April as confirmation of the proper filing, instead will find that they are charged with the tax due resulting from the return on 20 May.  This may cause confusion for some taxpayers, and they should be made aware of this adjusted timeframe for being charged the tax they owe.

FOOTNOTE

1  See Real Decreto-ley 14/2020, de 14 de abril, por el que se extiende el plazo para la presentación e ingreso de determinadas declaraciones y autoliquidaciones tributaries published in Boletín Oficial del Estado núm. 105, de 15 de abril de 2020 at:  https://www.boe.es/diario_boe/txt.php?id=BOE-A-2020-4448 .    

The information contained in this newsletter was submitted by the KPMG International member firm in Spain.

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