The Provincial Treasury of Gipuzkoa will return the taxes paid in 2019 to the self-employed who have losses in 2020. This measure is intended to provide a “liquidity injection”to one of the groups most affected by the Covid-19 crisis, as explained by the regional spokesperson, Eider Mendoza.
The Governing Council of the Provincial Council today approved this measure, called ‘carry-back’, which will allow the self-employed to compensate for the losses of this year with the profits obtained the previous year, and will have a cost for the foral coffers of around 13 million euros, as calculated by the technicians of the provincial council.
In principle, the measure is intended for the self-employed in general, but it is clear that the most benefited will be those who currently have their businesses closed due to the pandemic, such as those related to hospitality or tourism .
Applications must be submitted at the close of the fiscal year, with real losses, and they may be requested between January February next year.
According to Mendoza, the problem that many self-employed people have at the moment is that they have no income, or those they have are very low while their expenses remain the same. “This aid is specifically aimed at this group of taxpayers: they do not have to pay taxes for this year because they are exempt from fractional payments and, in addition, with the ‘carry-back’ we will also refund the taxes of the previous year “.
The self-employed must request it through a “simple” form in which “they only have to fill in one box”.
In addition to this measure to support the self-employed, which is currently exclusive to Gipuzkoa, the Governing Council of the provincial council has approved a series of fiscal measures that are harmonized between the three Basque provincial institutions to offer more It is flexibility and liquidity for companies and workers especially hit by the economic crisis derived from Covid-19.
These measures include, for example, the Raising the mandatory limit for filing the tax return from 12,000 to 14,000 euros; in cases where there is more than one payer or payer, a limit of 20,000 euros is established when the second payer does not exceed 2,000 euros. Or the postponements aimed at self-employed, micro and small companies, which can be requested between January and April.
Regarding the fractional payments of the self-employed, in the fourth quarter they will not have the obligation to do so, as they have done in the previous three quarters. And, on the other hand, the Covid-19 aid granted by public administrations is exempt from tax. All measures are included in the Regional Decree-Norm, which will be published in the next few days in the Official Gazette of Gipuzkoa.
Regarding the approximate economic impact of the measures, the Provincial Treasury expects that of the postponements suppose 160 million euros, the one with the exemption from the installment payment of self-employed workers of 16 million and, finally, that of € 13 million carry-back.
Mendoza has also announced that the Gipuzkoa Provincial Council wants to make a “qualitative leap in teleworking” and will offer this formula to all personnel whose work is not necessarily face-to-face without being conditioned on conciliation.
The new formula, which will be mixed and will combine face-to-face and teleworking modalities, will run until June 30, 2021.