Main tax measures approved by Royal Decree-Law 6/2024, of November 5, and by Royal Decree-Law 7/2024, of November 11.
Direct support: Direct support is granted to self-employed workers and companies that are taxpayers of personal income tax for economic activities (IRPF), or taxpayers of corporate tax with their tax domicile in the municipalities affected by DANA, and also for those who have establishments or operations in these municipalities, even if they do not have their tax domicile in these areas. For companies, the amount of this support will depend on the volume of operations in the 2023 fiscal year and in the case of entrepreneurs or professionals who are natural persons, the amount of the support will be 5,000 euros. This aid can be applied for on the Tax Agency’s online platform between November 19 and December 31, 2024.
Extension of the submission deadline until January 30, 2025: For the submission of tax returns and self-assessments whose due date is between October 28 and December 31, 2024.
DANA Special Postponement: Possibility of requesting a special payment deferral. The payment is deferred for 24 months for tax returns due between October 28 and January 30, with no late payment interest for the first 6 months.
Extension of the payment deadline until February 5, 2025:
- Regarding the second payment of Income Tax for 2023: for those taxpayers with tax domicile in the province of Valencia and in the municipalities affected by the DANA who have pending payments. Affected taxpayers will be considered to be up to date with their tax obligations. If there are other debts, they may not be up to date.
- For debts in the voluntary period, in the executive period and the due dates of payment instalments and repayments of granted deferment and repayment schemes, whose due date had not yet expired on 7 November 2024. Taxpayers who benefited from the extension of time for debts in the voluntary period are considered up-to-date with their tax obligations. Other outstanding debts may not be up-to-date.
Taxpayers en módulos who conduct their economic activity in the affected area:
- In Personal Income Tax, a 25% reduction is approved in the net income of módulos, in favour of persons carrying out their economic activity using the objective estimation method, with a subsequent adjustment in the calculation of prepayments for the last quarter of 2024;
- In Value Added Tax, a 25% reduction is approved on the amount due for current transactions for individuals conducting their economic activity under the simplified regime.
- These taxpayers are allowed to exceptionally waive the application of the module system in 2024, opting in this case for the simplified direct estimation system, without preventing the taxpayer from reapplying the module system in 2025 or 2026. The waiver can be made during December 2024 or by submitting within the statutory period the declaration corresponding to the fractional payment of the fourth quarter of 2024 as provided for under the direct estimation method.
Other Tax Benefits
- An exemption from the 2024 Property Tax is granted for properties located in municipalities affected by the DANA. Affected taxpayers, if they have already made the payment, may request a refund.
- A proportional reduction in the IAE rate for 2024 is granted for entities and professionals with business premises located in the affected municipalities. Affected taxpayers, if they have already made the payment, may request a refund.
Isabel Riquelme