The General Council of Economists of Spain and the Associations of Economists and Business Graduates of Valencia demand that urgent fiscal measures be activated to mitigate the effects of Dana in the Valencian Community and other affected areas. The economists’ proposal wants to motivate the recovery of businesses, housing or cover bodily injury.
Both institutions consider it necessary that, among the emergency measures to be applied for personal and material damage caused by DANA, a series of tax considerations should be included. in line with those approved in its time by the volcano of the island of La Palma or the earthquake of Lorca.
Among the economists’ proposals are the exemption of public aid received to compensate for bodily injury, in housing or in commercial and service establishments, deductions for the rehabilitation or repair of damaged usual housing, the reduction of modules of personal income tax and the special simplified VAT regime. farms and agricultural activities affected, as well as the application of the 60% deduction provided for by the regulation for residents of Ceuta and Melilla.
Regarding corporate tax, deductions are claimed for affected companies, including for expenses related to the repair or replacement of damaged goods, tax incentives to promote investments in the reconstruction of business infrastructure, as well as that to consider the priority activity of patronage, for the purposes of the deductions of Law 49/2002, the recovery of cultural heritage
Economists are also calling for a 50% bonus on the full rate of tax for damaged goods, provided no repairs are carried out and they remain unfit for use, as well as an exemption from the tax IBI for damaged property, when it is proven that the property and people therein had to be moved, or the destruction or loss of crops constitute uncovered losses.
Recover stuff
Concerning the Economic Activities Tax (IAE), they are asking for a reduction for the commercial activities concerned, particularly in the most impacted areas, in order to facilitate the recovery of local businesses.
The reduction will be proportional to the time elapsed from the day on which the activity ceased until its resumption under normal conditions, without prejudice to considering, when the seriousness of the damage caused gives rise to it, the case of cessation within the normal conditions. exercise of this.
They are also asking for an exemption or a bonus on the tax applicable to repair, rehabilitation and reconstruction work on damaged properties, both for homes and commercial premises.
Concerning the Tax on transfers of property and documented legal acts (ITPYAJD), the associations of economists in Spain are calling for exemption from tax on transfers of property and documented legal acts from acts of formalization of the Moratoriums on loans and mortgage credits or without mortgage guarantee which arise pursuant to the suspension of interest payment obligations.
Finally, economists request the exemption of the Central Traffic Directorate fees required for processing cancellations of vehicles damaged or lost due to the consequences produced by the volcano, provided that compulsory automobile insurance is available.
The General Council of Economists of Spain recommends that the communities concerned regulate a 0% rate for tax on onerous transfers of ownership for used vehicles (and the State a 0% rate for VAT for new cars) in order to facilitate the purchase. vehicles for those who lost theirs due to flooding.
