We are writing this post on the occasion of the publication of the new Law 11/2021, of 9 July, on measures to prevent and combat tax fraud. This law introduces regulatory changes that affect taxation, which we highlight below:
- The system of surcharges for late filing without prior notice is modified: according to (article 27.2 LGT): An additional 1% + 1% is established for each full month that the self-assessment or declaration is submitted late for the first 12 months, in the case of more than 12 months, 15% + interest is established.
- Tax statute of limitations: For all tax returns for which the statute of limitations expires after 01/07/2021, the 78 days of suspension of the tax periods due to the pandemic are no longer counted.
- Modification in the reduction of penalties:
- Conforming Minutes:
o If the settlement is not appealed: The penalty is reduced by 30%.
o If the settlement & penalty is not appealed and is paid in the voluntary period: the penalty is reduced by 40% on the amount already reduced by conformity.
o If the penalty is appealed: the penalty is reduced by 30% but the 25% reduction will not apply.
- Minutes with agreement: reduced by 65%.
- 4. Obligation to report on virtual currencies located abroad in model 720.
- Taxes on Inheritance and Donations/ Wealth tax / Transfer tax: the taxable base will be calculated on the basis of the market value. In the case of real estate, the market value will be the reference value indicated by the Cadastro Inmobiliario on the date of accrual.
- Tax on Economic Activities:
- Both resident and non-resident individuals are exempt from tax.
- When the entity forms part of a group of companies, the INCN (Net Turnover) will refer to all the entities belonging to that group, irrespective of the accounting consolidation obligation.
- The maximum amount that can be paid in cash is reduced to € 1.000however when the payer is an individual who can prove that he/she is not resident in Spain, the amount paid in cash may be € 10.000.
Should you have any questions, we remain at your entire disposal.
MDG Advisors Team,
