The recent judgment of the Supreme Court confirming Corporate Tax deductibility of the default interest settled by the Administration is being analyzed.
The pandemic has intensified the remote working, which has led to the approval of Royal Decree-Law 28/2020, on telecommuting. The regulation establishes that the company must provide its employee with the necessary IT resources and compensate him/her for the additional expenses incurred (such as electricity and other expenses of the home office). Whereas it could be argued that the resources provided to employees could be considered as an income in kind, in accordance with the provisions of the Personal Income Tax Regulations for such situations this should not be the case.
The new European funds come as a clear opportunity in order to boost the recovery. Despite the fact that the timeline for its implementation continues to expand, so its effective reception will be delayed until well entered the second half of 2021, certain recent advances taken place both in Brussels and at the national level stand out. Several ministries continue to launch public consultations calls to identify projects that would be financed with the new funds.
The world and Spanish economies continue to face an unprecedented crisis in recent history. At Equipo Economico, we estimate that Spanish GDP will have experienced a drop close to 12% in 2020, and that we will witness a partial recovery of the economy in the next two years with annual growth rates of 6.8% and 2.6%, respectively. However, the recovery that we pose in our next year’s forecast has a certain artificial character, insofar as it depends directly on the continuation of the short-term effects of expansionary economic policies. We will have to wait for the “veil” created by these policies and other measures adopted to face the crisis to disappear, in order to certainly determine the profound structural change that is actually taking place.
In a year marked by the appearance of COVID19 and the decrease in international displacements, we reflect on the latest rulings of the General Directorate of Taxes and the administrative interpretation criteria regarding tax residence of individuals.