Fiscal measures for sectors affected by the crisis Álava, Bizkaia, Gipuzkoa




The new regulations include, for example, new tax incentives for landlords who lower the rental income for businesses affected by the Covid-19 crisis.

The haciendas of Álava, Bizkaia and Gipuzkoa have agreed on a new battery of measures to support the sectors most affected by the economic crisis caused by COVID-19, especially the self-employed and small companies.

The new Provincial Decree-Norm will soon be taken to the Governing Councils of the provincial councils of the three territories and has already been shared with the Basque Government.

The new regulations include, for example, new tax incentives for landlords who lower the rental income for businesses affected by the Covid-19 crisis, such as the hospitality industry or small businesses. As explained by the Diputación de Bizkaia through a statement, it will apply both to business leases and to the leases of business premises and pavilions, as well as to homes in which economic activities are carried out.

It is planned both in the Personal Income Tax (IRPF) as in the Corporate tax.

In the case of IRPF, the amount of the rent reduction will be considered as a deductible expense. However, in the event that the lease constitutes a return on capital for the lessor, the part of the expense that is not deductible, due to not having sufficient income, will give the right to a deduction in the full installment of 15%. In the event that there is not enough quota to be able to benefit from the deduction, it may be applied in the personal income tax of the following year.

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In the case of Corporate tax, landlords will also consider a deductible expense the amount of the rent reduction to those who carry out economic activities that have been substantially affected due to covid-19.

On the other hand, they must be met two requirements in order to apply the deductions: first, the duration of the reduction in the amount of the rent must be extended for at least three months throughout 2021; and second, there can be no compensation or recovery of the rental income at a later time.

Fractional payments

On the other hand, the second of the agreed measures is aimed at the self-employed group. As during the four quarters of 2020, personal income tax payers who carry out economic activities They will not be obliged to self-assess and enter in the foral estates the installment payments corresponding to the first and second quarters of 2021.

Resumption of economic activities

Finally, the provincial treasuries have also agreed to introduce new deductions to help the resumption of the development of economic activities especially affected as a result of the covid-19.

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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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