COVID-19: CIRCULAR ON THE MEASURES COLLECTED IN RDL 8/2020 OF 17th MARCH BY SUBJECT:

In Fuengirola, on March 19, 2020

FISCAL AND TAX:

Important note (RD 465/20 of 17th March):

In accordance of RD 465/20 of 17th March, which modifies the RD 463/20 of the 14th March, it clarifies that the suspension of administrative deadlines does not apply to:

-          The presentation of tax returns and self-assessments.

-          The procedures of affiliation, liquidation and contribution of the Social Security.

Tax payment measures (RDL 7/20 of 12th March):

The established rules for obtaining deferrals are modified with the following circumstances:

1.       To meet the condition of SMEs (whose turnover for 2019 did not exceed 6.010.121,04€)

2.       Statements whose submission deadline ends between 13th March 2010 and 30th May 2020, such as withholdings and payments on account, to fractional payments of “Impuesto de Sociedades” (Corporation Tax) and IVA (VAT).

3.       The maximum debt limit is 30.000€.

The advantages of deferrals consist of:

1. Installments payment up to 6 months.

2. Exemption from interest for late payment during the first 3 months.

3. They will be granted automatically.

4. No “garantías” are required.

Measures regarding deadlines (RDL 8/20 of 17th March):

For the deadlines that are in progress or that start during the alarm state, the following measures are foreseen:

A) For deadlines started before the 18th March 2020, they are extended until 30th April 2020:

1.       The terms of payment of tax debts of liquidations made by the Administration and of the deferrals communicated until today.

2.       The deadlines for submitting allegations and answering requests, “embargo” proceedings and requests for information, including the “Catastro” (Cadastre) procedures.

3.       The deadlines for the development of auctions and adjudication of assets.

B) For the same procedures, they are suspended from 18th March 2020 to 30th April 2020:

1.       The maximum term of the tax procedures. However, Hacienda may continue to issue resolutions of the procedures already started.

2.       The calculation period for the prescription of tax debts, demanding their payment or initiating debt settlement procedures and, at the same time, requesting the refund of undue income by the taxpayer.

3.       The calculation period to appeal tax acts and present an economic-administrative claim.

4.       The execution of real estate in enforcement procedures.

C) For proceedings initiated and debts subsequent to 18th March 2020, these are extended until the 20th of May 2020:

The deadlines of payment of tax debts of liquidations made by the Administration and of the payment in installments communicated from today.

Deadlines for submitting allegations and answering requests, embargos and requests for information, including the procedures initiated by the “Catastro” (Cadastre).

The deadlines for the development of auctions and adjudication of assets.

In this regard, it must be taken into account that if the applicable law granted a longer term, it will be maintained. As well as, if the taxpayer presents allegations, pays or appeals, the procedure will continue without taking into account the suspension or extension of the aforementioned terms.

Concrete measures of the “Junta de Andalucía” regarding the Property Transfer Tax (ITP and Document dutties) and the Inheritance and Donations Tax.

The term to submit and pay the Property Transfer Tax, the Inheritance and Donations Tax which term ends between 17th March and 30th May 2020, both inclusive, is extended by 3 months.

The deadlines for submitting self-assessments and payment of public law debts which maturity occurs during the valid period of the state of alarm will be extended until the same day of the following month of the deadlines maturity.

Notification measures:

It will be understood by notified, the resolutions of appeals for replacement and economic-administrative procedures (TEARA and TEAC) with a single attempt of notification.

 Tax exemptions:

The notarial deeds of loan and mortgage, made under the economic measures of this Royal Decree-law, are exempt from the payment of document dutties.

PERSONNEL MANAGMENT:

1.       WORKERS RIGHTS. REQUIREMENTS AND PRACTICE.

The establishment of teleworking has a priority to avoid an “ERTE” or the reduction of any activity. To facilitate this, if the company had not previously established teleworking, the worker will carry out the self-assessment of occupational risks at home.

Right of schedule adaptation and reduction of working hours:

What are the necessary requirements?

a.       Having to take care of the spouse, partner, children, parents, siblings, grandparents or grandchildren.

b.      That there are exceptional circumstances derived directly from the actions to avoid the spread of COVID-19.

c.       That the care is based on reasons like age, illness, disability or closure of educational or care centers. Also included is the assumption that the person in charge of care or attention could not continue to do so for justified reasons.

d.      That the worker must take care the justified family member personally and directly.

In any case, it is required that it be carried out in a responsible, justified and reasonable manner, especially when several company workers request it at the same time.

What measures does the adaptation of the workers schedule include?

-          Shift change

-          Schedule being altered

-          Flexible Schedule

-          Part time work or intensive working day

-          Change of work center

-          Change of functions

-          Change in the deliver of work, including working remotely.

-          Other options that could be reasonably implemented.

These measures must be proposed by the worker and the company so that both reach an agreement. In no case does it entail a reduction in salary.

How is the reduction in working hours requested?

The reduction of hours must be communicated 24 hours in advance and if it reaches 100%, the worker will have to justify it and be reasonable. It supposes, in any case, the proportional reduction of the salary.

What if you already had a reduction in working hours previously for child or family care?

In that case, it may be requested that it be temporarily modified during the period of the health crisis.

2. ERTE AND UNEMPLOYMENT OF WORKERS.

Previously, these rules only apply to files initiated or communicated from today and, in return, require the maintenance of the level of employment for 6 months.

ERTE BY FORCE MAJEURE.

The requirements and deadlines for the procedure have been made more flexible, they are as follows:

Specification of assumptions to which force majeure applies:

• Suspension or cancellation of activities

• Temporary closure of public affluence premises.

• Restrictions on public transport and mobility of people.

• Lack of supplies that seriously impede the continued development of the activity.

• Contagion of the members of staff.

• Preventive isolation of the staff whenever the health authority decrees it.

Documentation established by the RDL to be submitted:

The application submitted to the Employment Ministry must include:

• Report justifying that the decrease in activity is directly related to the consequences of COVID-19.

• Supporting documentation that proves the content of the report.

Response by the employment authority:

It is reduced to 5 days and it will only examine whether or not the cause of force majeure claimed by the company exists. However, it is possible that the report of the Labor Inspection may be achieved, the issuance period is also 5 days by them.

ERTE FOR ECONOMIC, TECHNICAL, ORGANIZATIONAL AND PRODUCTION CAUSES:

Modifications in the procedure:

The consultation period must take place in any case, therefore, in the event that there are no legal representatives of the workers, the ERTE must be communicated to the representative unions in the sector involved in the negotiation of the collective agreement that is applied in the company.

As the representative commission must be constituted in 5 days, if the “sindicatos” (unions) do not appear, elections will be held to choose 3 workers.

The consultation period has been shortened to 7 days. However, if the Labor Inspection report is necessary, it can take 7 days to be issued.

UNEMPLOYMENT OF WORKERS.

Workers are entitled to unemployment benefit even if they have not accumulated the minimum period of employment.

The period during which they are receiving the benefit does not count for the maximum payment periods for possible future unemployment benefits.

In the case of seasonal workers that have worked during the period of the alarm state, they may receive the benefit for up to 90 days.

No measures have been established to speed up the process of obtaining the benefit, except for the electronic processing and non-production of effects in the event of a request after the deadline.

What does it mean to maintain the level of employment?

In the absence of forecast in this RDL, in other previous dictates for the approval of bonuses and other policies for job creation, the following parameters are taken:

The daily average of workers with permanent contracts in the period of 90 days prior to the new hiring is taken as a reference, discounting the resignations, those who were disciplinary dismissed from an appropriate position, and retirees, incapacitated and deceased.

In the event that this obligation is not fulfilled, the company will be obliged to return the bonuses, unless they cover the vacancies within a month with contracts of the same type.

The only exception is that, as for the calculation, there were resignations, disciplinary dismissals from an appropriate nature and retirements, disabilities and deaths.