Penalties for Failure to Deposit Annual Accounts on Time in Spain

In the Spanish Law on Capital Stock Companies (Ley de Sociedades de Capital or “Law”), there is an article (283) which historically has not been attributed much importance because in practice either it was not applicable or very seldomly applied. The article foresees various fines (up to 300,000 euros) for companies that do not deposit their annual accounts by the legally established deadline.

This entry was posted on 24 June 2021 by Christian Krause in Corporate and M&A.

Spain: New Regulations for VAT in Distance Sales

For years now, e-commerce has not stopped growing. It is undoubtable, however, that due to the prevention measures against COVID-19, e-commerce has increased significantly. It is within this context that modifications have been made to the European Directive on VAT with respect to so-called distance sales. It must be noted that this modification is exclusively directed at sales made with final customers, not business owners, which are located in EU countries other than that of the vendor’s registered address.

This entry was posted on 21 June 2021 by Gustavo Yanes in Tax.

Spain: Can An ERTE Be Converted into An ERE?

In this article, we will consider whether, pursuant to current legislation and case law, it would be easy to go from an ERTE ETOP to a Collective Dismissal Procedure (ERE) ETOP. For this purpose, we will examine ruling number 63, handed down by the High Court of Justice of Catalonia on 3 December 2020.

This entry was posted on 10 June 2021 by Monika Bertram in Labour.

2020 Losses Will Temporarily Not Count as Cause for Dissolution of Companies in Spain

The Spanish Law on Capital Stock Companies (Ley de Sociedades de Capital) establishes that a company has an objective cause for dissolution when losses decrease net equity to an amount equal to less than half of its capital. Within two months of when the governing body learns or should have learned of said situation, it must call the shareholders to a meeting to adopt the necessary corrective measures, proceed with dissolution of the company or request a declaration of insolvency. Failure to comply with this obligation implies that the director is jointly and severally liable for the corporate obligations subsequent to the occurrence of the legal cause for dissolution.

This entry was posted on 2 June 2021 by Christian Krause in Corporate and M&A.

Spanish Courts Put The Prohibition to Dismiss Due to Coronavirus and The Employment Safeguarding Clause to The Test

On 28 March 2020, in the midst of the state of alarm in Spain, Royal Decree-Law 9/2020 of 27 March entered into force. It adopts complementary measures in the context of employment to mitigate the effects of COVID-19. These regulations include, inter alia, in Article 2, the “prohibition” to dismiss when it is due to force majeure or economic, technical, organisational or production-related causes (ETOP) governed in Articles 22 and 23 of Royal Decree-Law 8/2020 of 17 March.

This entry was posted on 2 June 2021 by Monika Bertram in Labour.

Over 50 in Spain: Will a Dismissal Be Declared Null? Companies Panicking

If you have not heard of it yet, surely you will soon: it is none other than Ruling no. 323/2020 of 18 November, handed down by Labour Court no. 33 of Madrid. From November? Yes, despite its “age,” it has been generating discussion of late due to dismissals of workers over 50. This can be summarised in two simple and terrifying words for companies: null and void.

This entry was posted on 27 May 2021 by Patricia Rivera Almagro in Labour.