Bizkaia approves tax measures to support vulnerable people



The regional body regulates which income is exempt from paying personal income tax, and makes tax terms more flexible in addition to establishing tax deductions for the most vulnerable people affected by the crisis.

The Provincial Council of Bizkaia has approved two new provincial decrees from exceptional tax measures aimed at alleviating the economic consequences of the COVID-19 pandemic for the most vulnerable people affected by the crisis. Among other measures, both decrees regulate which income is exempt from paying personal income tax, tax periods are made more flexible and tax deductions are established.

As explained by the regional body, two measures have been adopted to postpone the payment of taxes to favor the liquidity of the taxpayers most affected by the crisis: a new extraordinary postponement without interest or guarantees and one new, more flexible regulation of ordinary deferrals for paying taxes.


The following income is declared exempt from paying personal income tax in 2020 and 2021:

The aid granted by public institutions to guarantee the right to housing of people in a situation of economic and social vulnerability as a consequence of the crisis derived from COVID-19.

The aid of the Basque Government of support to families to respond to economic impact of COVID-19, as well as those granted to facilitate the reconciliation of family and work life.

The aid obtained through bonuses in stimulus programs consumption in the tourism, catering and hospitality sector (Euskadi Turismo Bono and similar), in the commercial sector (Euskadi Bono Denda and similar), and in the cultural sphere (Bizkaia Aurrera Kultura Bonua).

Extraordinary aid for self-employed such as those granted by the Provincial Council of Bizkaia to the tourism sector, those granted by the Basque Government to the hospitality sector or those granted by Lanbide to self-employed workers whose activity has been suspended as a result of the declaration of the state of alarm.

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The benefits for the contingencies of illness and death due to COVID-19 derived from free group insurance for health personnel subscribed by insurance entities.

Fewer people required to declare personal income tax

The limit that sets the obligation to declare personal income tax is raised from 12,000 to 14,000. In addition, the limit of 20,000 euros is established, in the cases of more than one payer, when the sum of the amounts received from the second and other payers does not as a whole exceed the amount of 2,000 euros per year.

Exemption from the installment payment of the self-employed

People who carry out economic activities are exempt from the fractional payment of personal income tax corresponding to the fourth quarter of 2020, which will be paid in January 2021.

Postponement of tax debts

An exceptional deferment is established for the payment of tax debts whose term of voluntary submission ends before April 30, 2021. The debt will be paid with three months grace period in six monthly installments of equal amount.

On the other hand, the Provincial Council submits from today to public information a proposal to modify the conditions of the ordinary postponements in the Collection Regulations. If this proposal is approved, from January 2021 the postponements requested by the taxpayers will be granted automatically and without guarantee in the following terms:

Debts of up to 50,000 euros, in 48 monthly installments.
Debts of up to 100,000 euros, in 36 monthly installments.
Debts of up to 500,000 euros, in 24 monthly installments.

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Treatment of the habitual residence and renovation works

The deadlines are extended to materialize the amounts deposited in housing accounts for the acquisition of habitual residence, for the acquisition of habitual residence under construction, to reinvest in habitual residence or for the effective and permanent occupation of the habitual residence.

The extraordinary deduction in the personal income tax quota of 10% of the amount of renovation works of the habitual residence is extended to 2021 for those taxpayers who would not have applied it in 2020.

EPSVs rescue

Those people in a situation of ERTE or ERE as a result of COVID-19 who redeem their EPSV in the form of monthly income will integrate 60% in their taxable base if the collection has occurred in a year and 75% if they have done so in 2020 and 2021.

Corporate tax

The measures established in an extraordinary manner for certain tax treatments in Corporation Tax, extending the freedom of amortization and accelerated amortization for fixed assets, are extended to 2021; reinvestment of extraordinary profits; a special reserve for the promotion of entrepreneurship and the reinforcement of productive activity; participation in research and development or technological innovation projects; and the replacement of non-current assets for the purposes of applying certain deductions.

In 2021, the amount of the deduction for each contract remains at 25% of the worker’s salary, but the maximum amount of the deduction for each contract signed rises from 5,000 to 7,500 euros. The annual minimum wage requirement must be greater than 150% of the SMI, that is, greater than 19,950 euros.

The extraordinary deduction for investment in micro, small or medium-sized companies is extended to 2021.

The requirements for the deduction of expenses corresponding to financial leasing contracts that are renegotiated or signed in 2021 are made more flexible.

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Deduction to promote the digitization of local commerce

People who carry out economic activities will be able to deduct 10% of the amounts that they allocate to introduce digital tools in their marketing and sale processes from the personal income tax quotas corresponding to the financial years 2020 and 2021.

Extraordinary deduction for investment in microenterprises and SMEs

The extraordinary deduction for investment in micro, small or medium-sized companies is extended to 2021.

European funds

The extension of the grace period for loans granted by European funds to promote innovation, European funds to promote financing of economic activity and European funds to promote capitalization is extended to 2021 productive.

Transfer tax and stamp duty
Those deadlines that end in 2020 or 2021 are extended by six months for the presentation of the documentation that proves that the home meets the habitual residence requirements.

Priority activities

For the purposes of the application of tax benefits for patronage, the consideration as priority activities of those developed in the field of scientific research aimed at the fight against COVID-19, and in particular that developed by CIC-Biogune, is extended to 2021. Likewise, the consideration as a priority activity of certain cultural associations is extended.

In the field of school sports and non-professional federated sports, the amounts corresponding to 25% of the federation licenses or school fees paid to the sports federations during 2021 will be eligible for patronage tax benefits.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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