These days we are frequently asked notaries how does it affect alarm status to public deeds, since eWe are all immersed in a pandemic created by COVID-19 that causes multiple changes in our lives and in our assets. From the point of view of notarial activity, in this article we address these frequently asked questions and their answers about the main tax measures adopted.

ITP and AJD

I have bought an apartment from a private individual after declaring the state of alert (14/03/2020), specifically on March 30, when do I have to present the self-assessment? When do I have to make the income of the debt taxed by ITP?

In general, the deadline for submitting and paying the ITP self-assessment is one calendar month from the date of the act or contract (in this case, from the date of the deed of sale).

However, given the current situation, in Catalonia the period for submitting and paying the ITP has been suspended for the duration of the state of alarm.

Consequently, if the deed of sale was signed on March 30, the period of 1 calendar month will be counted from the day after the end of the state of alarm.

I have bought an apartment from a developer after the alert status was declared (14/03/2020), specifically on March 30, when do I have to submit the self-assessment? When do I have to make the income of the debt taxed by AJD?

It is the same as with ITP. The deadline for submitting the self-assessment by AJD is one calendar month from the date of the deed of sale.

In this case, having signed the deed on March 30, the period of one month will be counted from the end of the state of alarm.

Inheritance tax and donations

My father passed away on March 30. What is the deadline for filing and paying the Inheritance Tax?

In general, in Catalonia the deadline for filing and paying the Inheritance Tax is 6 months from death (an extension of 6 more months may be requested).

In this case, given that the death occurred during the alarm state, the period of 6 months (or 12, if applicable) will begin to run from the day after the end of the alarm state.

If, in another case, the death had occurred before the start of the state of alarm (that is, before March 14, 2020) and on this date the deadline for filing and entering the voluntary period had not yet ended, the time that pending is extended by an additional 2 months once the alarm state ends.

My father has donated 100.000 euros in public deed on March 30, when do I have to file the Donation Tax settlement? When do I have to make the payment?

In general, the deadline for filing the Donation Tax is one month from the date of the act or contract.

As the donation has taken place during the state of alarm, the deadline for filing and entering the Donation Tax is suspended and will resume once the state of alarm has ended.

Municipal Tax on the Increase in the Value of Urban Land

This tax is known as municipal capital gain.

I have sold an apartment to an individual after the alert status was declared (14/03/2020), specifically on March 30, when do I have to present the self-assessment of capital gains? When do I have to make the income of the debt paid by this tax?

In general, the deadline to submit and pay municipal capital gain is 30 business days (that is, not counting Saturdays, Sundays, and holidays) from the broadcast date.

If the transmission occurs during the state of alarm, as is the case, to find out the new payment terms of the tax, as it is a municipal tax, it will be necessary to go to the competent town hall to find out the measures adopted in this regard.

In the case of Barcelona, ​​the deadlines for obtaining the calculated self-assessment have not changed, although the deadline for paying said tax is extended until July 3, 2020.

That is, even if the payment of the tax is allowed to be delayed until July 3, the period in which the tax is considered to have occurred. capital gain of the land (that is to say, that comprised from the date of acquisition to the date of transmission) will not be increased and, therefore, will not imply a higher amount to be paid for the seller.

My father passed away on March 30. What is the deadline for filing and paying the municipal capital gain?

In the event of inheriting a property, the deadline for presentation and payment of municipal capital gains It is 6 months from the date of death (extendable for a further 6 months).

As in the previous case, if the property resides in Barcelona, ​​the deadlines to obtain the calculated self-assessment are maintained, although the deadline to pay said tax is extended until July 3, 2020.

We clarify all your doubts at our Notary in Barcelona.

Value Added Tax

Can I postpone the presentation of the VAT return?

The deadline for presentation and payment of those self-assessments whose expiration occurs from April 15 to May 20, 2020 is extended until May 20 (or May 15 if the payment is domiciled), as long as it is of taxpayers whose volume of operations in 2019 is less than 600.000 euros.

Can I defer the payment of VAT from the first quarter of 2020? Under what conditions?

Yes, the payment of VAT can be postponed for those self-assessments whose submission and payment deadline ends from March 13 to May 30, 2020, both inclusive, as is the case of VAT for the first quarter of 2020, provided that:

  • The amount of the debt is less than 30.000 euros and
  • The volume of operations for the year 2019 is less than 6.010.121,04 euros.

Regarding the conditions of the deferral, it will have a term of up to 6 months and the first 3 months will not accrue late payment interest.

For the calculation of the 30.000 euros, this will be determined taking into account both the debts referred to in the application itself and any other debts of the same debtor for which the postponement or fractionation has been requested and not resolved, as well as the amount of the pending payment maturities of deferred or fractioned debts, unless they are duly guaranteed.

If the limit of € 30.000 is exceeded, the postponement would be subject to the general requirements of the tax regulations: that is, a guarantee should be constituted and, since it is a passed tax, it should be proven that the VAT payments passed on have not been paid.

What other advice can you give me about VAT?

If you are renting premises and during the period of the state of alarm, you grant reductions in the rental price, they can make you prove the least repercussion of the tax by any means of proof admitted by Law. Therefore, it is advisable for said reduction to be recorded in a written document signed by both parties.

Take a look at the general regulation that answers the questions above and more.

Royal Decree-Law 7/2020, of March 12, adopting urgent measures to respond to the economic impact of COVID-19

Postponement of tax debts

The postponement of the income of the tax debt corresponding to all those declarations-settlements and self-assessments whose term of presentation and income ends from March 13, 2020 until May 30, 2020, both inclusive, without the need to provide collateral, is granted. provided that (i) the amount of the debt is less than 30.000 euros and (ii) the volume of operations of the debtor in 2019 does not exceed 6.010.121,04 euros.

This deferral will also apply to the following tax debts:

  • Withholdings and payments on account
  • IVA
  • Fractional payments of Corporation Tax

Regarding the conditions of the deferral, it will have a term of up to 6 months and the first 3 months will not accrue late payment interest.

The instructions to request the postponement are available on the Tax Agency website, at the following link: Instructions for requesting deferrals

Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to face the economic and social impact of COVID-19

Suspension of deadlines in the tax field.

Among others:

  • The payment terms of tax debts resulting from settlements (not self-assessments) provided for in sections 2 and 5 of art. 62 of the General Tax Law (Law 58/2003, of December 17), until:
  • On April 30, 2020, in the case of terms that began before March 18 and did not end on that date.
  • On May 20, 2020, if the settlement is notified as of March 18 (unless the one granted by the general rule is higher, in which case it will be applicable).
  • The limitation and expiration periods of the shares and tax rights are suspended during the period between March 18 and April 30, 2020.

Final Provision 1: Modification of the consolidated text of the Law of Tax on Patrimonial Transmissions and Documented Legal Acts (ITP-AJD) approved by Royal Legislative Decree 1/1993, of September 24

The exemption of the gradual quota of the modality of legal acts documented in the ITP-AJD in the deeds of novation of loans and mortgage credits is established.

Royal Decree-Law 11/2020, of March 31, which adopts urgent complementary measures in the social and economic sphere to face COVID-19

Art 53: Suspension of deadlines in the tax area of ​​the Autonomous Communities and Local Entities

The provisions of the art. 33 of Royal Decree-Law 8/2020, of March 17, will be applicable to the actions, procedures and procedures carried out and processed by the tax administrations of the Autonomous Communities and Local Entities.

Additional provision 9: Application of Royal Decree-Law 8/2020, of March 17, to certain procedures and acts.

Suspension of the statute of limitations and expiration of the shares and tax rights from March 14 (ie the date of entry into force of Royal Decree 463/2020, of March 14, which declares the state of alarm for the management of the health crisis situation caused by COVID-19), until April 30, 2020.

Royal Decree-Law 14/2020, of April 14, which extends the term for the submission and entry of certain tax declarations and self-assessments.

Sole article: Extension of the term for the presentation and entry of the declarations and self-assessments.

In the case of taxpayers whose volume of operations for the year 2019 is less than 600.000 euros, the deadline for filing and filing tax returns and self-assessments whose expiration occurs from April 15 to May 20, 2020, is expand to:

  • The 20 May 2020
  • On May 15, 2020 in case the payment is domiciled.

It affects, among others, VAT self-assessments and installment payments of Corporation Tax.