Tax Newsletter - March 2020 | Legislation

Approval of the 2019 personal income tax and wealth tax return forms

The March 19, 2020 edition of the Official State Gazette (BOE) published Order HAC/253/2020, of March 3, 2020, approving the personal income tax and wealth tax return forms for 2019. The main new features of the forms have been summarized in our Alert of March 19, 2020 (see here).

Amendment of Form 349 for the recapitulative statement of intra-Community transactions

The February 29, 2020 edition of the Official State Gazette (BOE) published Order HAC/174/2020, of February 4, 2020, amending the order on Form 349 for the recapitulative statement of intra-Community transactions. Specifically:

1. An exclusively electronic Form 349 is put in place.
2. The obligation to file Form 349 is established for traders and professionals who ship or transport goods from the Spanish VAT territory to another Member State under agreements to sell goods on consignment.
3. For 2020 returns, the obligation to file Form 349 annually is eliminated, although the form must still be filed monthly or quarterly depending on the amount of the intra-Community transactions performed.

The order came into force on March 1 and applies to recapitulative statements of intra-Community transactions in 2020 that are filed on or after March 1.

Change to Form 189 for the information return on securities, insurance and income

The February 29, 2020 edition of the Official State Gazette (BOE) published Order HAC/175/2020, of February 4, 2020, amending the order approving Form 189 for the annual information return on securities, insurance and income.

Specifically, the order amends (i) the “Market c” field, so that a distinction is made between the foreign-securities markets of the European Union and other foreign countries, and (ii) the “Number of securities” field, in order to align the formula for computing securities with Form 198 for the annual return for transactions in financial assets and other marketable securities, reporting the total number of securities of the reported party. Lastly, the order adds a new “Ownership code” field to differentiate between the absolute owner and the naked owner of the securities.

The order came into force on February 2, 2020 and will apply for the first time to returns to be filed for 2019.

Approval of the trading values in the fourth quarter of 2019 for traded securities for wealth tax purposes

The February 29, 2020 edition of the Official State Gazette (BOE) published Order HFP/176/2020 of February 20, 2017, approving the list of securities traded at traded venues, with their average trading value for the fourth quarter of 2019, for the purposes of the 2019 wealth tax return and the annual information return on securities, insurance and income.

Approval of Form 140 for requesting the advance payment of personal income tax credits for maternity

The February 29, 2020 edition of the Official State Gazette (BOE) published Order HAC/177/2020, of February 27, 2020, approving Form 140 for requesting the advance payment of personal income tax credits for maternity and regulating the notification of changes affecting entitlement to its advance payment.

The main changes to the form are as follows:

1. The request on paper must be made using printed paper provided exclusively by the printing service offered by the tax agency on its website.
2. The request can still be filed using an electronic certificate and using Cl@ve PIN, a system that was already being used in practice but was not expressly envisaged in the law.
3. The order simplifies the form, by reducing the cases where the taxpayer must notify the tax authorities of changes affecting the monthly collection of the tax credit for maternity.
4. Delegation of guardianship for pre-adoption cohabitation has been added in the form within the cases giving entitlement to the tax credit for maternity and, consequently, to entitlement to its advance payment.
5. Lastly, the order allows for notification of changes that may affect monthly collection to be done by phone or electronically online, using the electronic services for notification of changes that are posted on the tax agency’s website.

This order came into force on March 1, 2020. However, requests made on Form 140 filed before March 1 will continue to be governed, as regards notification of registration cancellations and changes in particulars, by the legislation contained in the previous order (Order EHA/394/2011, of February 21, 2011).

Change to timing of recognition rule applicable to aid for hiring young people in the farming business

The February 26, 2020 edition of the Official State Gazette (BOE) published Royal Decree-Law 5/2020, of February 25, 2020, adopting certain urgent measures relating to farming and food.

Among others, the royal decree-law changes the tax treatment of aid for hiring young people in the farming business. Specifically, it amends article 14 of Personal Income Tax Law 35/2006, of November 28, 2006, specifying the rules on the timing of recognition of income. Accordingly, starting on January 1, 2020, any amounts received in respect of public aid for the first installation of young farmers provided for in the Spanish National Rural Development Framework may be recognized over 4 years.