Possibility and conditions to modify the Business Activity Code (KAD)

April 16, 2020

The retroactive modification of the main business activity code (KAD) is allowed, if having been carried out or is being carried out from 23rd of March 2020 to 24th of April 2020 and dates back to 20th of March 2020 or earlier, provided that the new main business activity code (KAD) declared, was already included before the validity of this regulation as a secondary business activity code in the Registry of the business and it is the KAD with the highest gross revenue for the fiscal year 2019.

In case of an inaccurate declaration, in addition to the consequences already provided by law, the following penalties shall be imposed cumulatively: a) The business is losing the deductions and offsetting of tax benefits and it is obliged to return any amount benefited from the relevant provisions, with interest up to the date of its payment. b) A fine of 10% of the gross revenue of the fiscal year 2019 is imposed on the business and in any case this cannot be less than 10,000 euros. c) The business is subject to a fine equal to twice the extraordinary financial aid received by each employee of the company in the form of special purpose compensation.