New urgent measures in tax, cadastral and social security matters by 2020
The measures included in this RDL range from the tax and cadastral scope to the labor and social security field and are effective as of December 29, 2019.
The social security measures are as follows:
A) Minimum Interprofessional Salary
Until the real decree of the minimum interprofessional wage for the year 2020 is approved, the additional provision 5th RDL 18/2019 extends the validity of RD 1462/2018, Dec. 21, which established the minimum interprofessional salary for 2019, which It is 30 euros / day or 900 euros / month.
B) Pension revaluation
In accordance with article 7.1 RDL 18/2019, the application of article 58 LGSS, and article 27 LCPE is suspended. As announced in the media, the intention of the Government is that by 2020, the pensions be updated by 0.9% but, when they are in office, it cannot be carried out and therefore it is necessary to suspend said article in order to prevent two revaluations are made (from 0.25% first and up to 0.9% later), which would double the computer applications and multiply by two the cost in communication to the beneficiaries of the pensions.
C) Types and bases of Social Security contributions
In the same article 7 RDL 18/2019 the extension of the amounts of the maximum cap and the maximum contribution base in the Social Security system established in article 3 of RDL 28/2018 is collected, thus guaranteeing its applicability from January 1, 2020.
Following the same line, the additional provision 2nd RDL 18/2019, maintains the application of OC / 2019 (OM TMS / 83/2019, 31 in.).
D) Reduction of contributions due to loss of claims
According to art. 7.8 RDL 18/2019, the application of the system of reduction of contributions for professional contingencies to companies that have significantly reduced the work accident rate provided for in RD 231/2017 for contributions generated during the year 2020 is suspended.
E) “Safeguard clause”
The safeguard clause is a legal guarantee that was agreed at the time between unions, businessmen and the Government, which specially protected all workers who had been laid off before April 1, 2013 and did not find work again.
Given that the extension of this “safeguard clause” until December 31, 2019, included in RDL 28/2018, has not been sufficient to mitigate the effects that the new regulation would cause to those workers who left the labor market at age advanced and have not been able to return to work and with the consequent direct impact on their contributions and benefits, the validity has been extended until the end of 2020. And this has been done with the modification of section 5 of the transitional provision 4th LGSS that guarantees the maintenance of the regulations prior to Law 27/2011, of August 1, of updating, adaptation and modernization of the Social Security system, for certain groups that saw their employment relationship extinguished before 2013, provided that afterwards at that date they would not be included again in any of the regimes of the Social Security system. With this measure, the regulation of the retirement pension will continue to be applied, in its different modalities, access requirements, conditions and rules for determining benefits, effective before the entry into force of Law 27/2011, of August 1, to retirement pensions that are caused before January 1, 2021 in certain cases.
F) Extension of the term of cancellation of loans granted to Social Security
The additional provision 3 RDL 18/2019 extends by 10 years, as of 2019, the term for the cancellation of the loan granted to the Social Security by the State, referred to in article 12.3 LPGE / 1999.
RDL 18/2019, also includes tax measures such as the extension, for the 2020 tax period, of the quantitative limits of billing by modules in the Income Tax of Physical Persons, keeping the exclusion limits in force in the actuality; for this, the 32nd LIRPF transitory provision is modified. With this measure, the self-employed will not be able to pay taxes by the objective estimation method when all their activities exceed 250,000 euros or when the turnover to other entrepreneurs or professionals exceeds 125,000 euros; with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit by volume of income.
Similarly, the limits for the application of the simplified regime and the special regime of agriculture, livestock and fisheries, in the Value Added Tax with the modification of the transitory provision 13th LIVA are extended for the 2020 tax period.
Art is also modified. 33 Law 19/1991, of June 6, on the Property Tax, extending the Property Tax for the year 2020, a tax whose yield is fully assigned to the Autonomous Communities.
In cadastral matters, the update coefficients are updated – up or down – of the cadastral values of urban real estate by 2020 under the terms of article 32.2 of the Real Estate Cadastre Law.