The Treasury will charge interest starting September 20 for taxes deferred by Covid-19

638,000 self-employed workers and SMEs will have to pay earlier to avoid the extra cost

One month remains for self-employed workers and small and medium-sized businesses (SMEs) to avoid paying interest, if they took advantage of the tax deferrals for the first quarter of this year, applied by the Government among the measures to overcome the difficulties created by confinement during the state of alarm.

According to data made public by the Treasury, around 638,652 self-employed workers and SMEs have benefited from this extraordinary measure, resulting in a total deferred amount that exceeds 3,031 million euros.

The date from which late payment interest will begin to be paid is September 20, although the payment of taxes will continue in the executive period until next November 20.

The concepts of deferral refer to withholdings and deposits on account; installment payments of personal income tax; payments on account of Corporate Tax; and the quarterly VAT declaration: form 303.

Extraordinary regulation

These dates are regulated by the seventh final provision, ninth final provision and second transitional provision RD-law 19/2020, which extends the period of non-accrual of late payment interest for postponements to four months.

In turn, these postponements are established in articles 14 of RD-Law 7/2020, of March 12, by which urgent measures are adopted to respond to the economic impact of Covid-19, and 52 of RD-Law 11/2020, of March 31, by which urgent complementary measures are adopted in the social and economic sphere to confront the virus.

These modifications apply to all authorized postponement requests under these special regulations.

The tax deferral was approved in the Council of Ministers on April 15 and allowed all businesses that invoiced less than 600,000 euros to postpone the payment of their self-assessments such as VAT, Corporate Tax or fractional payment of Personal Income Tax for a period of six months, three of them without interest.

However, subsequently the Council of Ministers itself extended the period up to four months during which the tax obligations can be paid without having to bear late payment interest, which is around 3,75% of the result of the liquidation, as established as legal interest of money.

This declaration will arrive very few days after, between July 1 and 20, the declaration and settlement of taxes for the second quarter of this year are made, which has included most of the days of confinement in the state. alarm.