Other forms of payment and/or extinction of tax debts

Termination through entry in the current account system in tax matters

The tax debt resulting from the declaration of Personal Income Tax may be extinguished by compensation through a notation in the current account system for tax matters.

To this end, taxpayers of Personal Income Tax who are covered by the current account system in tax matters regulated in articles 138 to 143 of the General Regulations of tax management and inspection actions and procedures and development of the common rules of tax application procedures, approved by Royal Decree 1065/2007, of July 27, will present their declaration in accordance with the rules provided for in the sixth section of the Order of September 30 of 1999, which approves the application model for inclusion in the current account system in tax matters, establishes the place of presentation of tax returns that generate debts or credits that must be recorded in said tax current account and develops the provisions of Royal Decree 1108/1999, of June 25, which regulates the current account system in tax matters. 

Termination due to compensation with recognized tax credits

Tax debts resulting from Personal Income Tax declarations may also be extinguished by compensation with tax credits recognized by administrative act in favor of the same taxpayer, in the terms provided in articles 71 and following of the LGT and in accordance with the conditions and procedure established in articles 55 and following of the General Collection Regulations.

In relation to LGT see Law 58/2003, of December 17, General Tax.