Changes introduced in the Royal Decree-Law 34/2020 of 17 November

1.- Extension of the grace periods and guarantees for ICO loans

 

The expiration deadline of the guarantees regulated under RDL 8/2020 may be extended by a maximum of three years, provided that  the borrowers comply with the requirements set out in the article and  the guaranteed operation does not exceed eight years from the date of initial formalisation of the operation.

 

The grace period for the repayment of the principal of the guaranteed operation may be increased by a maximum of twelve additional months, provided that it complies with the requirements listed in the article and that the total grace period does not exceed 24 months.

 

Please find below main requirements indicated in this RDL, in order to be able to apply for an extension of the term or grace period for repayment:

• Submit the application on time
• The financing operation is not in arrears 
• The debtor has no outstanding debts in the CIRBE (Central de Información de Riesgos del Banco de España)  
• The financial institution has not notified the guarantor of any default on the guaranteed transaction with the debtor at the date of the extension
  
• The debtor is not subject to bankruptcy proceedings and that the debtor complies with the limits established by the European Union’s State aid regulations.

 

2. Modifications to the Law on Capital Companies with regards to the holding of shareholders’ meetings telematically

 

I. In the case of Public Limited Companies, even if the Articles of Association do not provide for it, the Board of Directors may provide in the notice of the General Meeting for attendance by telematic means and distance voting under the terms provided in Articles 182 and 189 of Royal Legislative Decree 1/2010 of 2 July and Article 521 of the same legal text, in the case of listed public limited companies, as well as the holding of the meeting in any place in Spain.

 

II. In the case of Limited Liability Companies , even if the articles of association do not regulate  it, the general meeting may be held by videoconference or multiple telephone conference, provided that all persons entitled to attend or those representing them have the necessary means, the secretary of the body recognises their identity, and states this in the minutes, which shall be immediately sent to the email addresses.

 

III. Exceptionally, during 2021, even if the Articles of Association have not regulated it, the meetings or assemblies of members or partners of the other legal persons under private law (associations, civil societies and cooperative societies) may be held by videoconference or by multiple telephone conference provided that all persons entitled to attend or those representing them have the necessary means, the Secretary of the Body recognises their identity and states so in the minutes, which shall be immediately sent to the e-mail addresses.

 

IV. Exceptionally, during 2021, even if the articles of association have regulated it, the meetings of the board of trustees of the foundations may be held by videoconference or by multiple telephone conference, provided that all the members of the body have the necessary means, the secretary of the body recognises their identity, and so states in the minutes, which shall be immediately sent to the e-mail addresses of each of the attendees.

 

3.- Modifications in the VAT of masks and certain medical equipment

 

With effect from 1 November 2020 and in force until 30 April 2021, the rate of 0 percent Value Added Tax shall be applied to the supply of goods, imports and intra-Community acquisitions of goods referred to in the Annex to this Royal Decree-Law whose recipients are public law entities, clinics or hospital centres, or private entities of a social nature referred to in section three of Article 20 of Law 37/1992, of 28 December, on Value Added Tax. These operations will be documented in the invoice as exempt operations.

 

In addition, the rate of 4% VAT shall be applied to the supply, import and intra-community acquisition of disposable surgical masks referred to in the Agreement of the Interministerial Commission on the Price of Medicines, of 12th November 2020, which revises the maximum amounts of sale to the public, in application of the provisions of Article 94. 3 of the rewritten text of the Law on Guarantees and Rational Use of Medicines and Healthcare Products, approved by Royal Legislative Decree 1/2015, of 24 July, published by Resolution of 13 November 2020, of the General Directorate of the Common Portfolio of Services of the National Health and Pharmacy System.

 

4.- Modifications to Corporate Tax

• Deduction for investments in film productions, audiovisual series and live performances of performing and musical arts.
  
• Increase in the deduction on Corporation Tax for technological innovation activities in production processes in the automotive industry value chain.

5.- Modifications to the Bankruptcy Law

 

Until 14th March 2021, the debtor who is in a state of insolvency will not have the duty to request the declaration of bankruptcy, whether or not the competent court has been notified the opening of negotiations with creditors to reach a refinancing agreement, an out-of-court settlement or adhesion to an anticipated proposal for a settlement.

 

Until 14 March 2021, the judges will not admit for consideration any application for the necessary insolvency proceedings filed after 14 March 2020. If the debtor has submitted an application for voluntary insolvency proceedings up to and including 14 March 2021, the application will be admitted in preference, even if it is submitted after the date of the application for insolvency proceedings.