Empty shopping street in Palma, Mallorca

The furlough scheme has been essential.

03-04-2021Teresa Ayuga

People who were under the ERTE furlough scheme in 2020 will be able to pay any tax owing from their 2020 declarations in six instalments from July 20 to December 20. There will be no late payment interest for doing so. Those who wish to pay in this way will need to make a request in advance.

The annual tax declaration campaign starts on April 7, and it will be one marked by ERTE income. The employment service made very low withholdings for ERTE or none at all. People who might normally have been exempt from making a declaration will need to do so as there were two sources of income.

There is concern about people's ability to make the payments. Six instalments will be a way of helping. Two instalments are the normal arrangement. Some 3.5 million people in Spain were on ERTE last year.

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Ned / Hace 8 months

The is going to be a tragic tax declaration for many. Even with 4 more possible instalments I have the feeling that many will find their payable tax will only go up as those on ERTE will also intersect with those that will have deferred their mortgage payments and/or stopped their private pension payments. Both of these being the primary means of tax reduction. This is on top of a low retention on ERTE that will have already have been spent to survive. Many are going to flip from typically getting a tax return to having a sizeable payment.

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