In these unprecedented times, there is a lot of confusion that’s why we asked Lídia Bertomeu Rosello from Poquet Asociados to helps us clear our doubts about the grey areas on the extraordinary economic measures approved by the Spanish Government this week.
Her you can find the whole Royal Decree-Law explained.
The Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to face the economic and social impact of COVID, was published this week in the BOE nº 73.
This RDL enters into force on the same day of its publication in the Official State Gazette and will remain in force for a period of one month from its entry into force, without prejudice to the fact that, after evaluating the situation, its duration can be extended by the Government through another RDL. Notwithstanding the foregoing, those measures provided for therein and which have a specified duration will be subject to it.
This Royal Decree mainly articulates the following measures:
THE SUSPENSION OF ADMINISTRATIVE DEADLINES
If, prior to 18/03/2020, you have notified debts settled by the Tax Administration, debts in the executive period, enforcement measures and deferrals granted with maturity prior to 30/04/2020, the term for payment is extended until that date, as well as Attention to requirements, seizure proceedings and information request Formulation of allegations, procedures for hearing of any procedure.
The deadlines of procedures previously indicated and communicated from 18/03/2020 were extended until today 20/03/2020.
For instance, a payment term of a deferment granted in 2019, which expires on March 20, can be paid until April 30th.
If the postponement is granted on March 20th and the first term expires on April 15th, it can be paid until May 20th. If the term expires on June 3rd, that will be the maximum date to pay it.
The extension of the aforementioned period will not apply to administrative procedures in the areas of affiliation, liquidation and Social Security contributions. Neither will it apply to tax deadlines, subject to special regulations, nor will it affect, in particular, the deadlines for filing tax returns and self-assessments.
We do not know if AEAT will modify its decision. But, for now, it is clear that the suspension and interruption of administrative deadlines do not apply to the filing of tax returns and self-assessments and will have to be carried out within the scheduled period, normally on APRIL 20, 2020.
LABOR DEVELOPMENTS: FLEXIBILIZATION MEASURES
ERTE for MAJOR FORCE.
Loss of activity will be considered as causes of major force, as a consequence of COVID-19 and the declaration of the state of alarm, which implies suspension or cancellation of activities, temporary closure of places of public influx, restrictions on public transport and general mobility of people and / or goods, and lack of supplies that seriously impede the continued development of the activity.
Urgent and extraordinary situations due to the contagion of the workforce or the adoption of preventive isolation measures decreed by the health authority will also be considered a major force.
- The company will be exempt from 100% of contributions in full if the company had less than 50 workers.
- Workers affected by a major force ERTE may access unemployment benefit, even if they have not paid the 360-day period that is generally required to be able to collect unemployment.
- The time in which the contributory-level unemployment benefit is received that brings about its immediate cause of the aforementioned extraordinary circumstances will not be computed, in order to consume the maximum periods of perception established.
Under normal circumstances, during an ERTE the worker can access the contributory unemployment benefit if he has the contribution period necessary to have access to it and, in addition, this period computes him for the purposes of the maximum periods of receipt of the benefit.
ERTE for economic, technical, organizational or production reasons.
In those companies that do not have major force causes and decide to suspend contracts or temporarily reduce the workday for the reasons provided in article 47 of the Workers Statute, changes have been made to the procedure to process an ERTE:
The length of the consultation period has been reduced to a maximum of seven days (compared to the 15 days generally foreseen).
The report of the Labor and Social Security Inspection, whose request will be optional for the labor authority, will be evacuated within the non-extendable period of seven days.
To facilitate the maintenance of employment and mitigate the economic effects of COVID-19, the Ministry of Economic Affairs and Digital Transformation will grant guarantees to the financing granted by credit institutions to companies and the self-employed to meet their needs derived, among others, from the management of invoices, need for currency, maturities of financial or tax obligations or other liquidity needs.
Guarantees may be granted up to a maximum amount of 100,000 million euros.
The conditions and requirements to be met, including the maximum term for the request for the guarantee, establish the agreement of the Council of Ministers, without the subsequent regulatory development being required for its application.
ACCESSORY BENEFIT BY TERMINATION OF ACTIVITY
Who can benefit from it?
Self-employed or self-employed workers, whose activities are suspended pursuant to the provisions of Royal Decree 463/2020, of March 14th, declaring the state of alarm:
Retail establishments and premises, with the exceptions provided for in said royal decree (commercial retail establishments for food, beverages, basic goods and goods, pharmaceutical establishments, health centres, veterinary centers or clinics, optical and orthopaedic products, hygienic products, press and automotive fuel stationery, tobacconists, technological and telecommunications equipment, pet food, internet commerce, telephone or correspondence)
Dry cleaners, laundries and the professional practice of the hairdressing activity at home
In any case, the activity of any establishment that, in the opinion of the competent authority, may pose a risk of contagion due to the conditions in which it is developing, will be suspended.
Self-employed or self-employed workers when their billing in the month prior to which the benefit is requested is reduced by at least 75 per cent in relation to the average billing for the previous semester
Duration of benefit?
Validity limited to one month or until the last day of the month in which said alarm state ends.
- a) Be affiliated and registered, on the date of the declaration of the state of alarm.
- b) In the event that its activity is not directly suspended by virtue of the provisions of Royal Decree 463/2020, of March 14, prove the reduction of its turnover by at least 75 per cent, in relation to with the one carried out in the previous semester.
- c) Be up-to-date in the payment of contributions to Social Security. However, if on the date of the suspension of the activity or the reduction of the billing this requirement is not met, the managing body will invite the self-employed worker to pay in the non-extendable period of thirty calendar days to enter the fees due.
It is not necessary for the self-employed worker to unsubscribe from his activity (Model 036 or 037 – If he has workers in charge, he must carry out an ERTE and, in addition, request the cessation of activity
Amount 70 per cent to the regulatory base
The time of its collection will be understood as listed, it will not reduce the periods of benefit for the cessation of activity to which the beneficiary may be entitled in the future
The perception will be incompatible with any other provision of the Social Security system.
We hope we can bring a bit of light on this confusing times but if you are in doubt, don´t risk it, put your self in the hand of professional that can help you deal with this.
If you need advice or want to inform yourself about these or any other issue on the subject, their team can assist you over the phone in Spanish, English, Valencian, German, French and Dutch.
For more information, please visit their website and find them on social media.
Poquet & Asociados
Carretera Moraira a Calpe, 197, local 1, Teulada – Moraira – 03724 (Alicante)
Phone: +34 966 498 560