Royal Decree-Law (RDL) 8/2020, of March 17, established an exceptional extension of the deadlines for drawing up and approval of the Annual Accounts due to COVID-19.
Now, the recent RDL 19/2020, of May 26, has modified these deadlines establishing the following:
– The deadline for drawing up the Annual Accounts is suspended until June 1, 2020 and resumes again for another three months from that date.
– The deadline for the approval of the Annual Accounts by the General Shareholders Meeting will be two months from the end of the deadline to draw up the Annual Accounts.
Thus, those companies whose corporate year coincides with the calendar year must draw up the 2019 Annual Accounts by August 31, 2020, and these must be approved by October 31, 2020.
These measures affect the obligation to file the Corporate Income Tax (CIT) return , due to the relationship between the calculation of taxable income and the accounting result. For this reason, the same Royal Decree-Law 19/2020 also establishes the following exceptional measures for filing CIT for the 2019 tax year:
– The deadline for filing the tax return is maintained. Therefore, the tax return must be filed within 25 calendar days following the six months after the end of the tax period.
– If the Annual Accounts have not been approved at the end of that deadline, the tax return will be made with the Annual Accounts available.
– A new CIT return must be presented, until November 30, 2020, if the approved Annual Accounts differ from those used in the tax return presented within the first expected deadline.
– In cases in which the new tax return results in a higher amount to be paid or a lower amount to be returned than that derived from the return filed within the first deadline, the new self-assessment will be considered complementary and interest for late payment will be generated in favour of the Tax Office.
– In the cases in which the new return does not result in a higher amount to be paid or a lower amount to be returned than that derived from the return filed within the first deadline, interest for late payment will be generated in favour of the taxpayer.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.