Last Saturday, March 14, 2020, Royal Decree-Law 463/2020 was approved, declaring a state of alarm, for fifteen calendar days, for the management of the health crisis situation caused by the coronavirus, hereinafter “COVID-19“. It entered into force on the day of its publication.
In addition to the aforementioned Royal Decree, the following regulations have also recently come into force Royal Decree-Law 6/2020 of 10 March and Royal Decree-Law 7/2020 of 12 March.
Below, we briefly summarize the main measures taken by the Spanish Government in response to the present situation:
1.- On the movement of persons and suspension of the opening of premises
The declaration of the state of alarm implies, among other measures:
a) A limitation on the freedom of movement of persons, who may only move around to (i) purchase food, pharmaceutical products and basic necessities, (ii) attend work centers to carry out their work and return to their habitual homes, (iii) attend health centers, assist in the care of the elderly, dependent or especially vulnerable persons, (iv) travel to financial institutions, as well as (v) for reasons of force majeure.
b) The suspension of the opening of retail premises and establishments, with the exception of those which market (i) food and esse ntial goods, (ii) pharmaceuticals, medical, optical and orthopedic products, (iii) fuel, (iv) hygiene products, (v) newspapers and stationery, (vi) tobacconists, (vii) technological and communications equipment, (viii) pet food, (ix) internet, telephone or mail order business as well as (x) dry cleaning and laundry services.
Any other activity or establishment which, in the opinion of the competent authority, may pose a risk of contagion is suspended.
2.- On the fiscal and economic measures taken
a) Employment measures
In order to protect public health, Royal Decree Law 6/2020 considers as an accident at work, exclusively for the purpose of receiving the economic benefit of temporary disability, those periods of isolation or infection of workers, caused by the COVID-19. The right to the benefit is recognized to self-employed or employed persons who are in a situation of work discharge on the date when the isolation or illness is agreed.
It is also expected that the Government will soon approve measures to speed up temporary employment regulations (“ERTE”), as well as aid to companies, self-employed workers and families.
Without prejudice to the specific measures that the government will finally approve in the coming days, to date, companies can, depending on the case, articulate a series of measures, among others: (i) teleworking, (ii) time exchanges, flexible hours, adaptations and reductions in working hours, (iii) paid and unpaid leave, (iv) ERTE due to force majeure or economic, technical, organizational and/or production reasons. All this should be analysed in accordance with the applicable collective bargaining agreement.
b) Fiscal Measures
Likewise, the deferral of the payment of the tax debt corresponding to all those returns-settlements and tax returns whose deadline for submission and payment ends from the date of entry into force of the Royal Decree-Law up to 30 May 2020, inclusive, and provided that the requests presented up to that date, refer to tax debts of a lower amount than that established in the tax law – Maximum amount of the deferment will be 30,000 euros per tax return – (exception limited to requests formulated in certain phases of the collection procedure) and provided that the debtor is a person or entity with a volume of operations not exceeding 6,010,121.04 euros in 2019.
Likewise, the deferral will apply to (i) tax debts that must be met by the withholder or obliged to make payments on account, (ii) those derived from taxes that must be passed on, as well as (iii) obligations to make payments in instalments on Corporate Income Tax.
Finally, the deferral will be for six months, and no default interest will accrue during the first three months of the deferral.
3.- On the suspension of procedural and administrative time limits
Finally, in matters of justice, the time limits provided for in procedural laws for all court orders are interrupted, without prejudice to the possibility of the judge or court taking any legal action necessary to avoid “irreparable damage” to the rights and interests of the parties.
In the criminal field, “the interruption does not apply to proceedings entrusted to (i) the guard services, (ii) urgent proceedings in matters of prison surveillance (iii) and to any precautionary measures in matters of violence against women.”
Finally, in administrative matters, time limits are suspended throughout the public sector, as defined by the Law on Common Administrative Procedure of Public Administrations, without prejudice to the competent body, provided that it is motivated by the strictly necessary measures to avoid damage to the rights of the interested party in the procedure and provided that the interested party agrees to the non-suspension of the time limit.
4.- Other measures that have been taken to support businesses and the self-employed
In addition to the above measures, the Government has adopted other measures that have been included in an 18,225 billion euro plan that includes 14.4 billion euro in measures for smaller companies and self-employed, with another 3.8 billion euro for the health system.
Among other measures, a 400 million euro ICO line has been set up to provide loans to companies and the self-employed in the sectors most affected by the coronavirus, such as transport, tourism and hotels.
5.- Final remarks
The above is a brief summary of the last news in relation to the recently approved regulations in force. It is likely that in the coming days new measures will be approved that will extend or develop the support measures related to the COVID-19 crisis. We will keep you informed of any new legislative developments related to the effects of COVID-19.
If you have any questions regarding the effects of COVID-19, please do not hesitate to contact this firm by e-mail at info@busquets-abogados.com.