The magazine Entrepreneurs publish online a wide article on the countdown to the legal and accounting closing of the financial year 2020, in which he has had the opinion of our Partner of the Tax Area, Miguel Ángel Molina. The news highlights that this year the changes at the accounting and tax level have been relevant due to the measures taken as a result of COVID-19.
Miguel Ángel Molina highlights that, when the deadline for filing the annual accounts for the 2019 financial year has not yet expired, «we must already estimate the 2020 accounting and fiscal closing. Remember: RD Law 8/2020 extended the deadlines for the formulation and approval of accounts for 2019 until November 30th. » Among its recommendations for accounting purposes, “we will have to analyze by areas the impact of COVID on the assets and liabilities of the balance sheet. Unlike the 2019 annual accounts, in 2020 the adjustments will have an effect on the profit and loss account. We must carefully review possible impairments of fixed assets, real estate investments, inventories, financial assets, deferred tax assets, etc. »
Regarding the fiscal closure, the partner of Tomarial highlights that «2020 is being an exercise of little legislative activity, due to COVID and the absence of a General State Budget Law. For this reason, at the tax level, we must review the billing figures for their impact on the calculation of the net income from economic activity in personal income tax, in VAT for the SII or, in the area of Corporation Tax, the possible application of the regime special for small entities ”.
Another recommendation is “not to lose sight of some“ classics ”of recent years, such as the compensation limits for negative tax bases (BINS), tax deductions, capitalization and leveling reserves, tax deductibility test for inventory impairments and commercial credits. And the measures approved by RD Law 23/2020, of June 23, on freedom of amortization and increase in the deduction for technological innovation for investments in the automotive industry.
