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.
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.
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.
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.
To subscribe to GMS Flash Alert, fill out the subscription form.
© 2023 KPMG, S.A., sociedad anónima española y firma miembro de la organización global de KPMG de firmas miembro independientes afiliadas a KPMG International Limited, sociedad inglesa limitada por garantía. Todos los derechos reservados. Para más detalles sobre la estructura de la organización global de KPMG, por favor visita https://kpmg.com/governance.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Connect with us
- Find office locations kpmg.findOfficeLocations
- Social media @ KPMG kpmg.socialMedia
Stay up to date with what matters to you
Gain access to personalized content based on your interests by signing up today