In general: Refunds arising from personal income tax regulations

Regulations: Art. 103 Law Income Tax

If the final result of the IRPF declaration, whether it consists of a self-assessment or a duly confirmed draft declaration, results in an amount to be refunded, the taxpayer may request a refund of said amount.

In accordance with the provisions of article 103 of the Personal Income Tax Law , this amount will be, at most, the sum of the withholdings actually made, the payments on account and fractional payments made of the Personal Income Tax , as well as the installments of the Non-Resident Income Tax paid by taxpayers who have acquired such status by change of residence, plus the amount corresponding, where applicable, to the maternity deduction regulated in article 81 of the Personal Income Tax Law and/or the deduction for large families or dependents of disabled persons provided for in article 81 bis of the Personal Income Tax Law .

How do I return?

The refund is not automatic. The taxpayer must expressly request it through the “ Income or Refund Document” (form 100) that accompanies the forms for the actual declaration.

In general, the refund is made by bank transfer to the account that the taxpayer indicates as his/her ownership in the aforementioned payment or refund document, although payment by crossed or personal check may be authorized.

Therefore, it is extremely important that the complete details of the account in which you wish to receive the refund are correctly filled out in the corresponding section of the aforementioned document.

The payment of the amount to be refunded will be made by bank transfer to the bank account that the taxpayer or his authorized legal representative indicates as his ownership in the tax self-assessment, communication of data or in the corresponding application, without the taxpayer being able to demand any liability in the event that the refund is sent to the bank account number designated by him.

See in this regard section 1 of article 132 of the General Regulation of the actions and procedures of tax management and inspection and development of the common rules of the procedures for the application of taxes, approved by Royal Decree 1065/2007, of July 27, modified by article 1.Seven of Royal Decree 1615/2011, of November 14, which introduces modifications in the matter of formal obligations in the aforementioned Regulation ( BOE of the 26th).

However, when the taxpayer does not have an account open in any collaborating Entity or there are any circumstances that justify it, this fact may be stated in writing to the head of the Administration or Delegation of the State Tax Administration Agency that corresponds to his/her habitual residence, including said writing together with the declaration. In view of this and after the relevant checks have been made, the head of the Administration or Delegation may order the appropriate refund to be made by means of a crossed or nominative cheque from the Bank of Spain.

When is it returned?

The Administration has six months, from the end of the deadline for submitting declarations, or from the date of submission if the declaration was submitted after the deadline, to carry out the provisional liquidation that confirms, or rectifies, the amount of the refund requested by the declarant.

If the provisional settlement has not been carried out within the aforementioned period of six months, the Administration will proceed to return ex officio the excess of payments on account over the self-assessed fee, without prejudice to the practice of subsequent settlements, provisional or definitive, that may be appropriate.

After the six-month period has elapsed without the payment of the refund having been ordered for a reason attributable to the tax authorities, the tax late payment interest will be applied to the amount pending refund from the day following the end of said period and until the date on which its payment is ordered, without the taxpayer needing to claim it.

Finally, it should be noted that, if errors or omissions are detected in the declaration, the tax authorities may rectify the result of the liquidation carried out by the taxpayer through the corresponding provisional liquidation, modifying the amount of the refund requested or determining that it is inadmissible.

In the event that such provisional liquidation takes place, it will be notified to the taxpayer by regulation, who may lodge appeals against it as provided for in current tax legislation. All of this, without prejudice to the fact that, after the provisional liquidation has been carried out, new limited verification actions may be carried out by the Tax Management bodies, as well as inspection actions, in both cases, when new facts or circumstances have been discovered that result from actions other than those carried out and specified in the provisional liquidation.

Note: The tax authorities shall not be liable for any delay when the refund cannot be processed within the specified period due to the declaration not being correctly completed in all its aspects, not containing the required documentation, or the details of the account to which the amount must be transferred being missing or incorrect.