Tax and Customs Authority

IRC (Corporate Income Tax) Services

Circular-Letter No. 20165/2013 of 5 March

This circular letter publishes the list of Municipalities, giving their District/Council code and the additional local tax (Derrama) rates to be collected in 2013, necessary to fill in Annex A of the Modelo 22 tax return form that, in accordance with the new local tax law (Law No. 2/2007, of 15 January), are levied on the income subject to corporate income tax for 2012.

Tax and Customs Authority

IMI (Municipal Property Tax) Services

Circular No. 4/2013 of 12 March

Circular 4/2013, of 12 March publishes the regulatory and operational framework of the settlement of IMI for 2012.

Tax and Customs Authority

Tax Claim Management Services

Circular-Letter No. 60094/2013 of 12 March

With this circular letter, the Tax Authority unifies procedures undertaken by the various services of the Tax and Customs Authority with regard to the definition of the relevant moment for the purposes of the calculation of interest for late payment, in order to determine the value of the guarantee to be provided in tax enforcement proceedings with a view to its suspension, taking into account the amendments made by the 2013 State Budget Law.

In particular, this Circular-Letter seeks to unify procedures in the following domains:

  1. Determination of the value of the guarantee, in particular in the case of the filing of various remedies relating the legality or enforceability of the debt;
  2. Maintenance of the suitability of the guarantee provided over time.

As expressly provided for in article 199(6) of the CPPT (Tax Procedural Code), the guarantee is provided in the amount of the enforceable debt, interest counted until the later of end of the term for voluntary payment or until the date of the application, with a maximum of five years, and all court costs plus 25% of the sum of those amounts.

With regard to the time at which the value of the guarantee should be determined, where the guarantee is provided within 15 days from the payment of instalments, as authorised, or after the filing of a reply against the legality or enforceability of the debt, the value thereof shall be calculated until the date of filing of the application for instalment payment or of the above-mentioned reply against the debt.

Where the guarantee is not provided within 15 days thereafter, the time of determination of its value shall be the date on which the same is provided.

The circular-letter above also expressly states that if, following a decision against the taxpayer in the scope of either one of the litigation procedures above another procedural means is provided against the debt, no new guarantee is required, unless the one provided is no longer enough to guarantee the value of the debt.

In this case, the taxpayer may, however, be notified to, within 15 days, increase the guarantee or provide a new one, taking into account the amount outstanding on that date.

Where the guarantee is increased or a new one is provided within 15 day period fixed for that purpose, the value of the guarantee shall be the one set out in the notification referred to above.

Otherwise, the value shall be assessed on the date of the actual provision of the guarantee.

Finally, as regards the period for which the guarantee is to be maintained, in accordance with this Circular-Letter it can only be withdrawn, ex officio, or at the request of the taxpayer, when the administration issues a final decision, when a court decision in favour of the taxpayer becomes res judicata or when the debt is paid.

It should also be observed that, in accordance with this Circular-Letter, the guarantee expires where the administrative complaint is not decided within one year for a reason not attributable to the taxpayer. The effect of the expiry of the guarantee can be extended to the jurisdictional stage of the defence against the debt, where such defence is filed by the taxpayer.

Tax and Customs Authority

VAT Services

Circular-Letter No. 30143/2013, of 13 March

With this circular letter, the Tax Authority, following the change brought by the 2013 State Budget Law – making agricultural production activities effectively subject to VAT –, establishes the legal setting and time limits within which taxable persons pursuing agricultural production activities should submit the statement of start or change of activity.

In this connection, it should be emphasised that in accordance with the Circular-Letter referred to above, taxable persons engaged in the activity of agricultural production and exploration should submit, from 1 April 2013, their statement of start of activity or statement of change, where they are not yet registered for VAT or this activity is not declared in the information provided on their statement of start of activity.

Accordingly, these statements should be submitted until 1 April 2013, for the statement of start of activity, or within 15 days from the date of the change, for statements of change, that is, until 15 April 2013.

It should further be emphasised that, in accordance with the Circular-Letter above, the repeal of the rule of exemption previously set out in article 9(33) of the VAT Code, results in the obligation to submit a statement of change for all taxable persons who, on the date of the repeal, carried out those activities, taking advantage of that exemption.

Where the taxable persons wish to choose the special exemption scheme provided for in article 53 of the VAT Code, they should submit the relevant statement, taking into consideration that scheme, during the 1st quarter of 2013. In this connection, as regards the possibility of being covered by this scheme, this Circular-Letter confirms that subsidies or subventions, whether taxed or not, received in connection with the agricultural exploration activity are not taken into account to assess the relevant turnover.

With regard to fixed assets regularisations, this Circular-Letter expressly states once taxable persons carry out transactions subject to VAT that entitle them to deduction, they can deduct the tax on fixed assets, in the tax period in which the change occurs, in the proportion of the number of years until completion of the five or twenty five year period since the assets began to be used or occupied, depending on whether they are movable or immovable assets.

Finally, in accordance with this Circular-Letter, taxable persons that begin their activity between 1 January and 31 March 2013 are not relieved from the obligation to submit the statement of change within 15 days from the date of 1 April, since the repeal of article 33(33) of the VAT Code modifies the details of the registration.