With the approval of Royal Decree-Law 15/2020, of April 21st, 2020, the extraordinary option for the modality of installment payments provided for in article 40.3 of the Corporation Tax Law(calculated in accordance with the tax base of the first 3, 9 or 11 months of the year, respectively) for taxpayers who have a tax period that has started from January 1st, 2020, so that:
- For taxpayers with a business volume not exceeding € 600,000 in 2019, given that the deadline for submission of the first installment payment in 2020 has been extended until May 20 (15 in the case of direct debit), this option to be taxed by the modality of article 40.3 LIS may be exercised, exceptionally and with exclusive effects for this period, within the period extended until May 15th or 20th, with the following specialty:
o In those cases where the declaration of the first installment payment has already been submitted prior to the entry into force of RDL 15/2020, the Tax Authorities will immediately implement a simple application system that will consist of the interested party submitting a new tax declaration with the content adjusted to the new modality and additionally, a simple form that identifies the first declaration submitted.
- For taxpayers with a Net Turnover of more than € 600,000 but less than € 6,000,000 in 2019, this change of modality is allowed but only in the second installment payment of the year (October) with the specialty that the first installment payment of the year (April) will be deductible from the installment of the rest of installment payments.
Consequently, it would be advisable to determine if a more favorable result comes out in the case of making the modality change and, if such, to submit it in accordance with this new option.
We will keep you informed about any additional news that may arise.