Tax deferral


On March 13, due to the current situation we are experiencing due to the Codid-19 Coronavirus, the Government of Pedro Sánchez published in the Official State Gazette (BOE) of the Royal Decree-Law, a plan to help SMEs and Freelancers with a turnover of up to six million euros in trading volume in the previous year, that is, in 2019.

The plan involves granting affected SMEs and freelancers deferrals and installments of their tax debts with the administration for a period of six months. Said deferrals refer to; Withholding of personal income tax, VAT paid and fractional payments of corporation tax.

The measure is effective from March 13 and until May 30 of this year 2020, both inclusive. In this way, small companies and own-account workers who need it, may defer the payment of up to 30,000'00 euros in taxes for six months, with a three-month grace period. This means that the deferrals will be granted for a period of six months, but the companies will have the option of returning the money after three months and without paying interest.