Measures contained in RD-law 6/2024, for the response to damage caused by DANA

The Royal Decree-Law 6/2024, of November 5, adopts a series of urgent measures to address the damage caused by the Isolated Depression at High Levels (DANA), which affected several municipalities in Spain between October 28 and November 4, 2024.

The Royal Decree-Law establishes specific measures following the declaration of an "area seriously affected by a civil protection emergency", it is structured in six chapters, forty-eight articles, twelve additional provisions, a transitional provision, a repealing provision, and five final provisions, as well as an annex with the list of municipalities affected by the DANA (and which are the recipients of the measures of the standard, also enabling the Government to modify said annex).

Measures taken include:

1. Extraordinary aid.

Destined to alleviate personal injuries, material damage to housing and belongings and to industrial, commercial, and service establishments; aid to natural or legal persons who have provided personal and property benefits, as well as aid to local corporations for emergency expenses.

On the other hand, aid to local entities is also collected for repair, restitution or reconstruction works of infrastructure, equipment or facilities and services of municipal or provincial ownership.

At the same time, in relation to the extraordinary risk insurance coverage managed by the Insurance Compensation Consortium, the deductible for material damage produced in industrial, commercial and service establishments caused directly by the events mentioned in article 1 of the Royal Decree-Law is eliminated when the insured are small and medium-sized companies. For these purposes and in order to facilitate the processing of compensation, small and medium-sized companies are considered to be those that have a net annual turnover that does not exceed 6,000,000 euros, in line with reference amounts provided for in commercial regulations.

With regard to damages to people, specifically in the case of compensation for death, and in order to facilitate the greatest speed in the processing of compensation, the Insurance Compensation Consortium is expressly enabled to directly request death certificates and the Registry of Insurance Contracts of death coverage referring to people who died as a direct consequence of the events mentioned in article 1 of the Royal Decree-Law.

2. Tax measures.

The deadlines for payment are made more flexible, both in the voluntary period and in the executive period, as well as the payment derived from deferral and installment agreements.

Likewise, different tax measures are developed: the granting of exemptions and reductions in the rates of the Real Estate Tax (IBI) and the Economic Activities Tax (IAE) corresponding to the year 2024 that affect properties damaged as a direct consequence of the DANA; The possibility is also provided for taxpayers who have paid the receipts corresponding to said fiscal year to request a refund of the amounts paid; An exemption from the DNI and traffic issuance fees is granted for the processing of cancellations of damaged vehicles in the issuance of duplicates of circulation or driving licenses destroyed or lost due to such causes.

It is also contemplated, for agricultural activities, a reduction in the net return indices referred to in Order HFP/1359/2023, of December 19, which develops for the year 2024 the objective estimation method of the Personal Income Tax and the regime special simplified Value Added Tax, in relation to farms and agricultural activities carried out in the affected area.

Three precepts that affect the financial sphere of local entities are also included. One of them establishes that the fiscal benefits established in taxes on real estate and economic activities will be compensated by the State Treasury in order to avoid loss of income to local entities affected by the catastrophe. Likewise, within the framework of budget stability regulations, the use of the surplus to finance financially sustainable investments is made possible, excluding the application of certain requirements and conditions that apply generally. These investments must have a direct relationship with the repair of the damages caused by the incident. Finally, the possibility is included that, by agreement of the Government Delegate Commission for Economic Affairs, certain financial needs can be financed in 2024 and 2025 from the compartments of the Financing Fund for Local Entities.

Likewise, a system of direct aid is established for affected entrepreneurs or professionals. This is direct aid to self-employed workers and companies, and its amount will depend on the volume of operations in 2023. Thus, the affected companies will be able to benefit from 10,000 euros of aid, up to 150,000 euros, depending on the volume of operations of the affected companies. In the case of the self-employed, the aid will be a single amount of 5,000 euros.

3. Measures regarding Social Security.

This set of articles regulates various extraordinary measures to support companies and workers affected by natural disasters in certain locations in Spain, through exemptions, deferrals and moratoriums on Social Security contributions.

Exemptions in contributions (Article 18):

Companies with CCC in localities included in the Annex that are approved for an ERTE can benefit from a total exemption from business contributions to Social Security for the periods in which activities are suspended or reduced, between November 2024 and February 2025. The procedure and requirements are regulated in the D.A 44 LGSS and among them it is worth highlighting: The exemptions in contributions will be conditional on the maintenance of the employment of the affected workers during the six months following the end of the period of validity of the temporary employment regulation file. Companies that fail to comply with this commitment must refund the amount of contributions from whose payment they were exonerated in relation to the worker for whom this requirement has been breached.

Deferral and moratorium of payments (Article 19):

Companies with CCC in localities included in the Annex, as well as self-employed workers (in any regime) with domicile of residence or activity in localities included in the Annex, can request a deferral of the payment of Social Security contributions between October 2024 and January 2025 (for companies) or between November 2024 and February 2025 (for self-employed workers), with favorable conditions, such as reduced interest (0.5%).

Alternatively, an interest-free moratorium of up to one year can be requested, not being compatible with each other.

The request will have the effect of being up to date with payment, until the resolution is issued.

Extension of the deadline for payment of Social Security contributions (Article 20):

The regulatory deadlines for the payment of Social Security contributions are extended, between October 2024 and January 2025 for companies with CCC in a locality included in the annex and self-employed workers in the Special Regime for Sea Workers with their residence or activity address in a locality included in the annex, and between November 2024 and February 2025 for self-employed workers in the RETA, with one month extension.

*Article 20 refers to self-employed workers assigned to the RETA and the Special Regime for Sea Workers, although it does not include self-employed workers in the Special System for agricultural workers.

Suspension of collection procedures.(Article 21):

The actions of the fee collection procedure are suspended until February 28, 2025 for companies and self-employed workers (in any of their regimes) affected by the claims.

Exceptional extension of the deadlines for the payment of Social Security contributions (Article 22)

Companies with CCC in one of the affected locations may present and deposit the settlements of the fees accrued in September 2024 in the month of November 2024. This extension of the deadline applies only if the deposit had not been made before the entry into force of the real decree-law.

No late fees or interest will be applied.

The self-employed who have their residence or activity in the affected localities may pay the fees accrued in October 2024 also in November 2024, without surcharge or interest being applied, as long as they have not made the payment before the entry into force of the real decree-law.

Applicability to complementary settlements:

This extension of term also extends to complementary settlements whose regulatory payment deadline was scheduled for October 2024, allowing payment without surcharges until November 2024.

Extension of deadlines for cancellations and variations (Article 23):

Requests for dismissal from employees of companies with CCC in locations included in the annex, which occur between October 28, 2024 and February 28, 2025, may be submitted within 30 calendar days following the day of termination in the company.

Requests for withdrawal from self-employed workers with residence or business address in localities included in the annex, with effects between October 28, 2024 and February 28, 2025, may be submitted within 30 calendar days following the cessation of employment. company.

The variation of data in the scope of the ERES regulated in art. 18 may be carried out until the moment in which the last request for the calculation of the settlement of quotas is submitted.

Measures for self-employed workers (Article 24):

The self-employed who cease their activity due to accidents may request the benefit for cessation of activity provided for in art. 331.1.b) LGSS without the need to prove force majeure.

The recognition of the benefit will be carried out by the Mutual Insurance Companies, without requiring accreditation of the impossibility of carrying out the activity.

It will not be computed for the purposes of consuming the periods of art. 338 LGSS the time that the cessation of activity benefit is received due to the direct cause of the catastrophe.

The minimum contribution period prior to cessation of activity is established at twelve months. The recognition of the benefit does not extinguish the bonuses or reduction of fees that they may be receiving prior to the cessation of activity, which may be resumed once the benefit ends.

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Exceptional consideration of work situations (Article 25):

The temporary disability processes produced in the area corresponding to the localities included in the Annex initiated from October 29 to November 30 will have exceptional consideration as a work accident, for benefit purposes economic.

Permanent disability, death and survival pensions derived from accidents described in article 1 of the standard will be considered a situation assimilated to a work accident, exclusively for purposes of calculating their economic amount.

The force majeure of art. will not apply. 156.4.a) LGSS, by which the IT, IP, death and survival processes derived from a work accident will be effectively considered a work accident.

Measures for administrative processing (Article 26):

The processing of procedures related to Social Security is facilitated by accepting responsible declarations when the interested parties cannot present the usual documents due to accidents.

Extraordinary increases in benefits (Articles 27 and 28):

The beneficiaries of the Minimum Vital Income and non-contributory pensions in the affected areas will receive a 15% increase in monthly payments from November 2024 to January 2025.

4. Measures for households, companies and the self-employed.

A line of guarantees is provided for coverage on behalf of the State of the financing granted by financial entities to households, companies and the self-employed.This financing may be used as support by other aid and compensation that is activated or may be activated as a consequence of this causal event, most particularly the compensation from the Insurance Compensation Consortium for the coverage of extraordinary risks and the aid granted in accordance with Royal Decree 307/2005, of March 18.

On the other hand, the suspension of interest and principal payment obligations -moratoriums- for loans and credits with and without mortgage guarantee is addressed, regulating its regime and effects. To this end, a wide-ranging legal moratorium is contemplated in relation to debts associated with credits and loans of those affected by the meteorological phenomenon.

Finally, a sanction and supervision regime is established for the entities and subjects affected, at this point, by the royal decree-law, with special reference to the entities supervised by the Bank of Spain, in order to be able to adequately monitor the evolution of the situation.

5. Other complementary measures.

The first of them includes actions in the judicial, notarial and registry fields, in order to facilitate the activity in these matters, guaranteeing service to the citizen and legal security.

The second section, for its part, contemplates consumer protection measures. The suspension of the deadlines for exercising the right of withdrawal or other additional rights that may have been contractually established, such as a potential right of return, is established.

Likewise, and with the purpose of eliminating procedures that could prevent the effective exercise of these rights, the obligation to present the documentation necessary for its exercise is exempted when it is impossible to obtain or preserve it as a consequence of the impacts caused by rainfall. torrential.

Likewise, this standard develops the statute of responsibilities and execution of contracts for the provision of goods or provision of services that have been or may be affected by the extraordinary meteorological situation caused by DANA. Firstly, the institution of force majeure provided for in article 1105 of the Civil Code is specified. In this way, the parties are exonerated from responsibilities regarding the execution of contracts that cannot be fulfilled, as well as the way to carry out the restitution of the amounts that may have been paid. To this end, the impossibility of performing subsequent services is expressly provided for. In these cases, the postponement of the provision of the service is allowed to the moment in which it can be effectively provided or the return of the amounts already paid, when the affected consumer or user does not want, or cannot, enjoy the service on a deferred basis.In these cases, the collection of new fees is also prohibited until the service can be provided effectively.

At the same time, this royal decree-law highlights the prevalence of sectoral regulations in those cases in which it already regulates the impossibility of execution of the contract by the employer, as occurs, for example, with the regulations that regulate the provision of certain supplies.

Finally, and as a guarantee of legal certainty, a limitation period of six months is provided for the exercise of rights by affected consumers or users. This period will begin to run from the moment the right arose or from the entry into force of the rule, in the event that the right had arose previously.

The standard is completed with a series of additional, transitional, repealing and final provisions.

The first and second additional provisions establish that, in order to allow the monitoring and budgetary control of the measures adopted to alleviate the damage caused by DANA, any expense file processed for this purpose must be attributed to the budget program 929 D "Contingencies associated with Isolated Depression in Levels High (DANA) of 2024", which is created for this purpose in each budget section.

The credit transfers that are necessary to be carried out within each budget section to allow the correct budget allocation to the aforementioned program will be approved by the heads of the Ministerial Departments or the directors of the Autonomous Bodies and other entities of the state administrative public sector with a budget limiting.

The third additional provision provides for the possibility that aid applications submitted prior to the entry into force of this royal decree-law may be resubmitted within the deadlines provided for in sections 4 and 5 of article 3, provided that any of the conditions and requirements for the granting of said aid had been modified by the same.

The eighth additional provision creates the National Response and Reconstruction Mechanism against DANA, which will be assigned to the TRAGSA GROUP.This Mechanism will be responsible for the management, coordination and material support of those measures that are required by the regional and local authorities affected by DANA in the territorial area of the Valencian Community and, where appropriate, those that may be decided by the Interministerial Commission referred to in the Agreement of the Council of Ministers of November 5, 2024 by which the territory affected as a consequence of the isolated depression at high levels (DANA) is declared "area seriously affected by a civil protection emergency". which has affected large areas of the Peninsula and the Balearic Islands between October 28 and November 4, 2024.

The ninth additional provision exempts from the obligation to be up to date in compliance with tax obligations or with Social Security, with the purpose of facilitating the management and obtaining of the help.

The tenth additional provision refers to the suspension of procedural deadlines, until now agreed upon by the General Council of the Judiciary, and whose implementation requires, as has happened in similar previous circumstances, a rule with the force of law; and the eleventh establishes the temporary waiver of the obligation to request the declaration of bankruptcy for those natural or legal persons who are in a state of insolvency.

For its part, the twelfth additional provision includes the suspension of the prescription and expiration periods.

The sole transitional provision determines that the provisions of articles 8 and 9 will apply to procedures whose processing was initiated prior to the entry into force of this royal decree-law, as well as to those initiated subsequently, until January 30, 2025.

The single repealing provision deletes any provisions of equal or lower rank that oppose the provisions of this royal decree-law.

For its part, the first final provision modifies Law 39/2015, of October 1, on the Common Administrative Procedure of Public Administrations, with the aim of incorporating into the aforementioned law the possibility that, through the agreements that the Council of Ministers may adopt to declare areas seriously affected by a civil protection emergency, By virtue of the provisions of article 23 of Law 17/2015, of July 9, of the National Civil Protection System, the suspension of the terms and interruption of the deadlines for compliance with the procedures of the public sector administrative procedures that correspond to the interested parties residing in the municipal terms affected by the protection emergency are established. civil.

The fifth final provision determines the entry into force of the standard on the day following its publication in the "Official State Gazette."

The annex includes the list of municipalities affected by DANA.