Postponement of debt payment due to temporary displacements

a. Situations that give rise to a change of residence and allow payment deferral

The Tax Administration, upon request from the taxpayer, may defer payment of the tax debt corresponding to the capital gains referred to in this section when the change of residence is due to one of the following situations:

For a temporary transfer for work reasons to a country or territory that is not considered a tax haven.
For any other reason, provided that, in this case, the temporary displacement occurs to a country or territory that has signed an agreement with Spain to avoid international double taxation that contains an information exchange clause.

In said postponement, the provisions of Law 58/2003, of December 17, General Tax, and its implementing regulations will apply, and specifically regarding the accrual of interest and the constitution of guarantees for said postponement.

See articles 65 and 82 of Law 58/2003, of December 17, General Tax and articles 44 to 54 (both inclusive) of the General Collection Regulation, approved by Royal Decree 939/2005, of July 29. Specifically, regarding the constitution of guarantees and the accrual of interest for deferrals, take into account articles 48 and 53 of the General Collection Regulations.

For the purposes of establishing the guarantees, these may be constituted, totally or partially, as long as they are legally and economically sufficient, on the values affected by the gains due to change of residence to which this special regime is applicable.

b. Postponement Specialties

The deferral of tax debt will be governed by the rules provided for in the General Collection Regulation, approved by Royal Decree 939/2005, of July 29, with the following specialties:

Applications must be made within the deadline for filing Personal Income Tax corresponding to the first financial year in which the taxpayer did not have such a condition as a result of the change of residence, and the country or territory must be indicated in the application. to which the taxpayer transfers his residence.
The deferral will expire no later than June 30 of the year following the end of the period of the five years following the last one that must be declared for Personal Income Tax .

However, if the aforementioned period has been extended as indicated below, the expiration of the postponement will be extended until June 30 of the year following the end of the new period.
If the transfer is made for work reasons, a document justifying the employment relationship that motivates the transfer issued by the employer must be provided.
In the event that the taxpayer transfers the ownership of the shares or participations prior to the end of the period of the five years following the last one that must be declared for Personal Income Tax due to change of residence, the The postponement will expire within two months from the transfer of the shares or participations.

c. Postponement period

The debt deferral will be granted for five years.

However, when there are circumstances that justify a temporary transfer for work reasons to a country or territory that is not considered a tax haven, the duration of which does not allow the taxpayer to once again acquire the status of taxpayer for this tax within the period of five years following the last one that must be declared for Personal Income Tax , the taxpayer may request from the Tax Administration the extension of the aforementioned period in order to extend the expiration of the deferral.

The extension in no case may exceed five additional exercises.

d. Request for extension of the deadline

The application must be submitted within within three months prior to the end of the five years following the last year in which this tax must be declared.

The request must state the reasons that justify the extension of the displacement , as well as the period of time that is considered necessary to once again acquire the status of taxpayer for this tax and will be accompanied by the corresponding justification.

In view of the documentation provided, the Tax Administration will decide on the origin of the requested extension, as well as with respect to the years subject to extension.

Extension requests that are not expressly resolved within a period of three months may be deemed to be rejected.

e. Extinction of the debt subject to deferral

In the event that the taxpayer again acquires the status of taxpayer for this tax at any time within the period of five years following the last one in which he must declare for this tax without having transferred ownership of the shares or participations, the tax debt object of postponement will be extinguished, as well as the interest that may have accrued.

The aforementioned extinction will occur at the time of presentation of the declaration referring to the first year in which this tax must be paid.

In this case, the cost of any guarantees that could have been provided will not be reimbursed.