Among the many business impacts brought on by the COVID-19 pandemic and resulting economic unrest are a slew of legislative changes and recommendations. Here are some important updates to know about if you have employees, and thus payroll, in Spain.
Extensions for compliance filings
The filing deadlines applicable to 2019 annual accounts have been extended for six months.
Extensions for payment deadlines
Small and midsize businesses with a trading volume of 6 million euros or less may defer income tax, corporate tax and VAT obligation payments of 30,000 euros or less for up to six months, with no interest penalties applied for three months.
Special considerations or recommendations—as an employer or for employees—to keep in mind
In response to the COVID-19 crisis, the Spanish government has issued a decree for employees with temporary contract suspensions or reduced work hours, granting them an exemption for 75% to 100% employer social security contributions, depending on the size of the company. This decree also ensures people temporarily suspended from work can retain their benefits and that people affected by temporary layoffs can receive unemployment benefits.
Also, for as long as Spain is in a state of emergency, the self-employed can access self-employed unemployment benefits, if their revenue falls by at least 75%.
Programs or initiatives to help offset financial impacts
The Spanish government has approved 200 billion euros to support people with financial difficulties, self employers and small companies and shops that have been obliged to close their business.
Several economic measures have been implemented, including the provision of liquidity for businesses and the self-employed through loans secured by the central government or backed by CESCE, allocating a line of guarantees for businesses equal to 100 million euros.
Although this information is correct and up to date as of this publishing, changes are happening frequently. Our local market teams and in-country experts are keeping up with all regulatory amendments, and we’re available to assist you and your organization as you work through payroll and HR challenges in Spain. Contact us today.
You can also find more information for payroll, HR and workforce impacts in our COVID-19 Resource Center, which we’re updating frequently.
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.