Coronavirus: Measures to sustain economic activity

A state-backed guarantee scheme for businesses and the self-employed, worth up to 100,000 million euros, has been approved to meet their needs in relation to invoice management, working capital requirements, financial or tax obligations due, or other liquidity requirements. This is a facility whereby the State provides cover for the financing granted by financial institutions to businesses and the self-employed.

The Council of Ministers will set out the conditions and requirements necessary for the line to become operational.

The ICO’s net borrowing limit is being increased in order to to increase the existing ICO funding schemes for businesses and the self-employed.

It is streamline customs procedures on imports in the industrial sector, stipulating that customs clearance will be carried out via computer applications.

It is Tax deadlines have been suspended until 30 April and the deadlines for paying tax debts have been made more flexible:

These include, amongst others, the deadlines for payment of tax debts; the expiry dates of instalment plans and payment schedules under deferred payment and instalment agreements granted; the deadlines for complying with notices, attachment proceedings and requests for information of tax relevance; to submit representations in response to the initiation of such proceedings or hearings, issued in proceedings relating to the assessment of taxes, the imposition of penalties, declarations of nullity, the refund of overpayments, the correction of material errors and revocation, which have not been concluded by the time this Royal Decree-Law comes into force.
No enforcement action will be taken in respect of security interests over immovable property.
The period from the entry into force of this Royal Decree-Law until 30 April shall not be taken into account for the purposes of the maximum duration of tax assessment, penalty and review proceedings handled by the AEAT.
Nor shall it be taken into account for the purposes of the limitation period or for the purposes of expiry periods.

All bodies within the public sector are prohibited from terminating public contracts. A specific regime for the suspension of such contracts is therefore provided for (as set out in Article 34 of the Royal Decree-Law).

You can view the full text of the Royal Decree-Law described in the following link to the Official State Gazette (BOE)

The team at Auris Advocats