7. Other Tax Obligations. Withholdings

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The Laws of Personal Income Tax and IS establish that certain people or entities, whenever they pay certain income, must withhold and deposit it in the Treasury, as payment on account of the personal tax of the person receiving the income, a pre-established amount.

In Personal Income Tax the obligation to withhold arises when the income is paid. In the IS when the income is due or in the payment or delivery, if earlier.

The withholder or person obliged to pay on account must:

Deduct from the income paid the corresponding percentage according to the nature of the income paid.
Submit the corresponding declaration according to income.
Enter 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 declaration period, a certificate with the data that appears in the annual declaration, the withholding or payment on account made when satisfying the income and the percentage applied.

Self-assessments can be quarterly or monthly.

Quarterly : For the amounts withheld and income on account for the immediately preceding calendar quarter: between 1 and 20 April, July, October and January .
Monthly : Those withholding or required to deposit on account that are large companies and Public Administrations whose annual budget is greater than €6 million for the amounts withheld and the deposits on account of the previous month: between 1 and 20 of each month .

There is an obligation to present a negative declaration when, once income subject to withholding or payment on account has been paid, it would not have been mandatory to withhold (with the established limits). It is not necessary to submit a negative declaration if income subject to withholding or payment on account has not been satisfied during the declaration period (when income subject to withholding or payment on account is not going to be satisfied, such modification must be communicated in form 036 or 037 census declaration).

Likewise, the withholder or person obliged to deposit on account will present the annual informative declaration of withholdings and deposits on account made during the 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 DNI electronic or with Cl@ve (for natural persons).
Form for presentation (pre-declaration) generated through the printing service of the Electronic Headquarters of the Tax Agency (printed pre-declaration obtained exclusively via the Internet).

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

Returns on movable capital.
Payments on account on capital gains from transfers or redemption of shares and participations in collective investment institutions, as well as those derived from the transfer of subscription rights over shares.
Patrimonial profits from forest exploitation of neighbors in public forests.
Prizes starting at €300.51.
Leasing or subletting of urban real estate. In IS , if the property is in Ceuta or Melilla, the percentage is reduced by half. In Personal Income Tax 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 July 5, 2018, €20,000 in 2019 and €40,000 from 2020.

The type of withholding of 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 or less than 15% for special employment relationships of a dependent nature. If the returns are understood to be obtained in Ceuta or Melilla from July 5, 2018, the percentage will be reduced by 60%.

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

The electronic headquarters of the Tax Agency incorporates a « Reporter of Income from Economic Activities », where you can consult which businessmen or professionals have the obligation to withhold and deposit into account, in what cases and what The amount must be withheld or deposited on account.