7. Other Tax Obligations. Withholdings

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The Personal Income Tax and Corporate Income Tax laws establish that certain persons or entities, whenever they pay certain income, must withhold and pay into the Treasury, as payment on account of the personal tax of the person receiving the income, a pre-established amount.

In IRPF the obligation to withhold arises when the income is paid. In the IS when the income is due or in the date of its payment or delivery, if it is earlier.

The withholding agent or person obliged to make the payment on account must:

Deduct from the income paid the percentage that corresponds to the nature of the income paid.
Submit the corresponding income tax return.
Pay into the Treasury the withholdings and payments on account that have been made or should have been made.
Issue and deliver to the taxpayer, before the start of the tax return period, a certificate with the data appearing in the annual return, the withholding or payment on account made when paying the income and the percentage applied.

Self-assessments can be quarterly or monthly.

Quarterly : For the amounts withheld and income on account of the immediately preceding calendar quarter: between 1 and 20 April, July, October and January .
Monthly : Withholding agents or those required to make payments on account that are large companies and Public Administrations whose annual budget exceeds €6 million for the amounts withheld and payments on account from the previous month: between 1st and 20th of each month .

There is an obligation to file a negative declaration when, having paid income subject to withholding or payment on account, it would not have been mandatory to practice withholding (with the established limits). It is not appropriate to file a negative declaration if no income subject to withholding or payment on account has been paid during the declaration period (when income subject to withholding or payment on account is not to be paid, such modification must be communicated in the census declaration form 036 or 037).

Likewise, the withholding agent or person required to make payments on account shall submit the annual information declaration of withholdings and payments on account made during the fiscal year, between January 1 and 31 of the following year .

It is possible to choose between the various forms of presentation of each model, unless it is mandatory to use one:

Electronic , with Certificate or electronic DNI or with Cl@ve (for individuals).
Form for submission (pre-declaration) generated using the printing service of the Tax Agency's electronic headquarters (printed pre-declaration obtained exclusively online).

In general and for income other than from work or economic activities, the type of withholding and payment on account is 19% , among others, for:

Income from movable capital.
Payments on account of capital gains from transfers or reimbursement of shares and interests in collective investment institutions, as well as those arising from the transfer of subscription rights on shares.
Capital gains from forestry exploitation by residents in public forests.
Prizes from €300.51.
Leasing or subleasing of urban properties. In IS , if the property is in Ceuta or Melilla, the percentage is reduced by half. In the IRPF as of July 5, 2018, the percentage will be reduced by 60%.

Prizes subject to the special tax on prizes from certain lotteries and bets are subject to a withholding of 20% of the prize amount that exceeds the exempt amount; €10,000 from 5 July 2018, €20,000 in 2019 and €40,000 from 2020.

The withholding rate for work income will be calculated based on the amount of work remuneration, as well as the personal and family circumstances of the recipient. However, the withholding rate may not be less than 2% for contracts or relationships lasting less than one year, nor less than 15% for special employment relationships of a dependent nature. If the income is understood to be obtained in Ceuta or Melilla after July 5, 2018, the percentage will be reduced by 60%.

The withholding rate for professional income is 15%. In the case of starting a professional activity – in the year and the following two years – 7%. These rates will be reduced by 60% if the income is understood to be obtained in Ceuta or Melilla.

The Tax Agency's electronic headquarters includes a " Economic Activities Income Reporter ", where you can check which business owners or professionals are required to withhold and pay on account, in which cases and what amount should be subject to withholding or payment on account.