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ECONOMIC ACTIVITIES TAX

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Article 4 (tax benefits) of Royal Decree-Law 10/2021, in its section 2, grants a reduction in the Tax on Economic Activities corresponding to the year 2020 for claims that have occurred in 2020, and to the 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 assets related to that activity have been damaged as a direct consequence of the incidents caused by torrential rains, snow, hail, hail, wind, floods, river and torrent overflows, coastal phenomena, forest fires or other catastrophic events that occurred from April 1, 2020 to June 30, 2021 , provided that they have had to be relocated or damage has occurred that forces the temporary closure of the activity.

The indicated reduction will be proportional to the time elapsed from the day on which the activity was until it is resumed under normal conditions, either in the same premises or in other premises set up for this purpose, without prejudice to considering, when the severity of the damage caused gives rise to it, the assumption of cessation of the exercise of that activity, which will take effect from December 31, 2019, when the accident took place in 2020, and from December 31, 2020, when the accident occurs in 2021.

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

Taxpayers who are entitled to these benefits have paid the corresponding receipts for the aforementioned fiscal years may request 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 Personal Income Tax to the exceptional aid for personal injury referred to in article 2.

Article 2 of the same regulation refers to aid intended to alleviate personal injuries: in the section it contemplates the cases of death and incapacity directly caused by the events mentioned in article 1 (episode "Filomena" 1/2021), and material damage to housing and belongings, in which it is indicated that the aid provided for in Royal Decree 307/2005, of March 18, which regulates subsidies in response to certain needs arising from emergency or catastrophic situations, and establishes the procedure for their granting, which will be financed from the budget of the Ministry of the Interior.