The Official State Gazette (BOE) published this Wednesday the royal decree law by which urgent measures are adopted to respond to the damage caused by the DANA in different municipalities between October 28 and November 4, 2024. The more than twenty measures aimed at alleviating the economic impact of the catastrophe on small and medium-sized businesses and the self-employed come into force from November 7 and according to the Government estimates more than 400,000 employees and self-employed workers and 30,000 SMEs are among the potential beneficiaries.
The set of measures incorporated in the approved decree, which is the first part of an action plan divided into three phases and which aims to rebuild the affected areas and provide an economic boost, is valued at 10.6 billion euros. As stated by the ministries that incorporate the largest volume of measures for workers, the self-employed and companies, those of the Treasury and Social Security, monitoring of the operation of the measures will be carried out from this moment in order to expand and adapt them in the coming weeks.
Among the main tax measures are found:
Direct aid to companies and self-employed workers
Non-refundable aid will be transferred to some 95,000 SMEs and the self-employed with tax domicile in the areas affected by DANA for a total value of 838 million euros. In the case of the self-employed, this aid is estimated to reach around 65,000 beneficiaries and will be 5,000 euros, with a cost of 325 million euros. For SMEs, they will range between 10,000 for those with less than one million euros of transaction volume in 2023 or the net amount of turnover and up to 150,000 euros for companies with more than 10 million euros. of turnover or volume of operations, with an estimated 30,000 beneficiary companies and a cost of 513 million euros.
These aids can be requested through the electronic headquarters of the Tax Agency, communicating the account number in which you wish to receive the payment and can be requested from November 19 to December 31, 2024. The payments They will take place starting December 1.
Suspension of deadlines for payments and tax debts
The deadlines for submitting and filing tax returns and self-assessments whose expiration dates are between October 28 and December 31, 2024, will be extended until January 30, 2025.
The electronic submission of billing records for the month of November is extended until December 16, 2024. And it will also apply to all tax obligations derived from the regulations governing special and environmental taxes.
The deadlines to address the requirements, seizure procedures and requests for tax information, as well as tax application, sanctioning or declaration of nullity procedures, as well as the return of undue income, will be extended until January 30, 2025.
The deferral of the income of the tax debt corresponding to all those declarations, settlements and self-assessments will be granted. The term will be 24 months and no late payment interest will accrue during the first six months.
The extension of the deadline for the presentation and entry of declarations and self-assessments will not apply to the self-assessment of the special regimes applicable to taxable persons who provide services to persons who do not have this condition, who carry out distance sales of goods and certain internal deliveries of goods or the declarations of exchange of goods within the European Union.
Measures in the cadastral area
The deadlines for submitting cadastral declarations, the deadlines for filing economic-administrative appeals and claims and the deadlines for formulating allegations, addressing requirements for cadastral procedures and requests for information with cadastral significance are extended until January 30, 2025.
Tax benefits
Exemption from the Real Estate Tax (IBI) installments corresponding to the 2024 financial year referring to real estate is granted.
A reduction in the Tax on Economic Activities (IAE) corresponding to the year 2024 is also applied to industries of any nature, commercial establishments, maritime-fishing, tourism and professionals whose business premises or assets have been affected. The exemptions and reductions in tax quotas provided will also include those of surcharges.
Traffic fees will be exempt for processing vehicle cancellations requested as a result of damage caused by DANA, as well as fees for issuing or renewing the National Identity Document (DNI). In addition, the planned personal injury aid, as well as the cadastral accreditation fee, will be exempt from personal income tax.
Special tax reductions for agricultural activities
For farms and agricultural activities in which damage has occurred as a direct consequence of the accidents, the reduction of the net return indices may be authorized, on an exceptional basis, by which the method of objective estimation of the IRPF and the special simplified VAT regime.
Investments made to repair DANA damage
Investments to repair damage caused by DANA made by local entities will be considered financially sustainable investments and will be executed as a priority over other investments.
Financing by the Financing Fund for Local Entities
Coverage in 2024 and 2025 of the financial needs arising from the actions necessary to alleviate the effects derived from the catastrophe by local entities may be approved. And financing may be approved in 2024 and 2025 for necessary investment projects.
Income period for the second installment of personal income tax in 2023
Citizens of the affected areas may delay the voluntary payment period of the second personal income tax payment for three months, until February 5, 2025, for those with tax domicile in affected areas. The measure affects some 200,000 taxpayers in the province of Valencia.
Non-seizure of aid
The planned financial aid will be considered non-seizable.
ICO-DANA guarantees
A line of guarantees on behalf of the State for financing granted by financial entities to households, companies and the self-employed is approved within the scope of the Ministry of Economy. Guarantees may be granted for a maximum amount of 5,000 million euros until December 31, 2025.
Among the main Social Security measures are found:
Extraordinary temporary disability
Aimed at victim workers and their families, an extraordinary temporary disability is created for workers with physical or psychological ailments by DANA, who will be guaranteed a greater benefit with the collection of 75% of their salary from the first day of disability, compared to 60% as before.
Calculation of disability, widowhood and orphanhood pensions
Pensions for disability, widowhood and orphanhood caused by DANA will also be assimilated to work-related accidents and, therefore, will see their amount increased and their conditions improved when calculated based on the total income of the last year. The IT will be communicated by the Public Health Service doctor and will be working this week.
15% increase in minimum income and non-contributory pensions
Likewise, some 33,000 households benefiting from the minimum vital income or recipients of non-contributory pensions in the areas affected by DANA will see the amount of the benefit they have been receiving increased by 15% for three months (November to January 2025). The estimated cost of this additional special complement is 11.5 million euros. The increase in the minimum vital income is applied from the November payroll ex officio, therefore, without the need for any additional procedure.
Benefit for cessation of activity for the self-employed
For their part, affected self-employed workers can request the benefit for cessation of activity that will correspond to 70% of their contribution base, including total exemption from Social Security contributions and the possibility of total or partial cessation. As a novelty, the benefit can be requested, even if the minimum 12 months required by law to access it have not been met, future benefits are not consumed, it is counted as contributions and they will take effect from October 29. This benefit, with an estimated cost of 52.2 million euros and an estimated 68,000 beneficiaries, can be requested from today to the Mutual Funds collaborating with Social Security electronically.
ERTE due to force majeure
Regarding ERTE due to force majeure, companies can temporarily suspend the employment relationship or reduce working hours due to force majeure, introducing greater protection, so that they will be exempt from paying 100% of Social Security contributions, at least until on February 28, 2025. It is estimated that it will affect more than 350,000 workers and more than 26,000 work centers, with a cost of 147.9 million euros. Companies must request the ERTE before the labor authority. Suárez explained that the Administration is undertaking a more flexible deadline for procedures and advance payments.
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