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ECONOMIC ACTIVITIES TAX

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Article 4 (tax benefits) of Royal Decree-Law 10/2021, in section 2, grants a reduction in the Tax on Economic Activities corresponding to the 2020 financial year for claims that have taken place in 2020, and to fiscal year 2021 for claims that occur in 2021.

This reduction is granted to industries of any nature, commercial, maritime-fishing, tourist and professional establishments whose business premises or property used for that activity have been damaged as a direct consequence of the accidents caused by torrential rains, snow, hail, hail, wind, floods, overflows of rivers and torrents, coastal phenomena, forest fires or other catastrophic events that occurred from April 1, 2020 to June 30, 2021 , provided that they had to be relocated or damage has occurred that requires the temporary closure of the activity.

The indicated reduction will be proportional to the time elapsed from the day on which the cessation of the activity occurred until its restart under normal conditions , since either in the same premises, or in others enabled for this purpose, without prejudice to considering, when the severity of the damage caused gives rise to it, the assumption of cessation in the exercise of that, which will take effect from December 31 from 2019 when the incident occurred in 2020, and from December 31, 2020 when the incident occurred in 2021.

This reduction in the IAE quota will also be extended to the legally authorized surcharges .

Taxpayers who, having the right to these benefits, have satisfied the receipts corresponding to the aforementioned fiscal years may request the refund of the amounts paid .

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PERSONAL INCOME TAX (IRPF)

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Article 4 of Royal Decree-Law 10/2021 in its section 7 grants the exemption from the Personal Income Tax to the exceptional aid for personal injuries referred to in article 2.

article 2 of the same regulation refers to aid intended to alleviate personal injuries: The section contemplates the cases of death and disability directly caused by the events mentioned in article 1 (episode “Filomena” 1/2021), and material damage in housing and belongings, which states that the aid provided for in Royal Decree 307/2005, of March 18, which regulates subsidies in response to certain needs derived from emergency situations or catastrophic nature, and the procedure for its granting is established, which will be financed from the budget of the Ministry of the Interior.