The condition so that the companies can get this benefit is that jobs are maintained, although as of December 31, and that it is applied for before July 31. Finance sources justify that these are activities considered of "special interest or municipal utility", due to their power in generating employment.
“The only criterion that has been followed is that they are activities that generate employment. Any activity that generates employment has been taken. Gambling halls, such as tobacconists or discotheques, are a legal activity, and they have the right to a tax cut to maintain economic activity and employment,” the City Council point out.
The objective is "to mitigate the negative economic effects that may occur in certain sectors of the city's economy, especially harmed by the COVID-19 pandemic."
The Community of Madrid began this year the implementation of a new physical access control system, which requires that people who wish to enter the betting premises must present an identification document. In addition, in November 2019, Madrid decided not to grant new licenses to "improve the regulations that affect the gaming sector, a legal and regulated activity that can generate public health problems."
Despite the restrictions recently imposed on the gaming sector in Madrid, the City Council considers it as an activity of “special interest or municipal utility”, since only those can access the tax cut.
If companies register less than a million euros, they are not subject to the Economic Activities Tax. According to the City Council, the benefit will help approximately 15,000 companies, which represent the sector with the highest income.
Source: GMB
