Urgent measures for the damage caused by DANA

To alleviate the effects produced by the DANA (Isolated Depression at High Levels) in different municipalities, Royal Decree-Law 6/2024, of November 5, establishes with effect from November 7, 2024, a direct aid system, corresponding to the 2024 fiscal year, for Corporate Tax taxpayers who, as of October 28, 2024, had their tax domicile in the municipalities affected by the DANA or, without having their tax domicile in said localities, have their operating establishment or real estate declared as related to their activity in said municipalities.

The beneficiaries of these aids will be: entities with their own legal personality that are taxpayers of the Corporate Tax or the Non-Resident Income Tax with a permanent establishment, provided that they are registered in the census of entrepreneurs, professionals and withholding agents dated October 28, 2024 and who had submitted the self-assessments corresponding to the 2023 financial year of Corporate Tax with declared income. If they had registered in the aforementioned census in the 2024 fiscal year, must have filed any self-assessment of Value Added Tax or fractional payments or withholdings in the 2024 financial year that they were required to file before October 28. The granting of this aid will be conditioned that the beneficiary remains registered in the census of entrepreneurs, professionals and withholding agents as of June 30, 2025.

In the case of entities with their own legal personality, the amount of aid will be determined based on the trading volume of the 2023 financial year, declared or verified by the Administration within the framework of the Value Added Tax, or failing that, the net amount of turnover, applying the following amounts:

With effect from November 30, 2024, Royal Decree-Law 7/2024, of November 11, approves, as a complement to the aid system described in the previous paragraphs, a extraordinary and temporary aid, under the de minimis aid system, whose recipients will be those taxpayers who have agricultural income in the Corporate Tax return, whether holders of any farm agricultural, livestock or agricultural plot located in some municipalities affected by the DANA, which have suffered damages greater than 40 percent in their production, plantation, livestock census or crop and infrastructure protection system, provided that they are eligible for insurance under the Combined Agricultural Insurance System.

Pursuant to the provisions of the Third Additional Provision of the LIS, in cases where an entity has obtainedcapital losses derived from assets related to the exercise of economic activities as a result of the effects produced by the DANAin different municipalities, will beexemptthe portion of the aid received that exceeds such losses. Inabsence of such losses, the total amount of aidwill not be integratedin the tax base of the Tax. In the event that thetax loss exceeds the amount of the aid, the negative differencemay be integratedin the tax base of the Tax.

For more information on the urgent fiscal measures adopted for the damages caused by DANA, you can consult the following link.