Issues to consider when settling the tax in 2024

Rectifying self-assessment

Law 13/2023, of May 24, modifies sections 3 and 4 of article 120 of the General Tax Law (LGT), introducing the corrective self-assessment for taxes provided for in their specific regulations. This will allow taxpayers to correct, complete, or modify previously submitted self-assessments.

In the area of Corporate Tax, the Third Final Provision of Royal Decree 117/2024, of January 30, incorporates a new article 59 bis into the Corporate Tax Regulations, which introduces the corrective self-assessment. as the general route to rectify, complete or modify the self-assessment previously submitted.

Therefore, with general character Taxpayers may rectify, complete, or modify previously submitted self-assessments by submitting a corrective self-assessment, regardless of the outcome of the same.

As exception, when the reason for the rectification by the taxpayer is exclusively the reasoned allegation of a possible violation by the rule applied in the prior self-assessment of the precepts of another rule of higher legal, constitutional, European Union law or an international Treaty or Convention. it will be possible request rectification through the procedure provided for in article 120.3 of the LGT, and developed in articles 126 to 128 of the RGAT, or submit a corrective self-assessment.

If this reason occurs alongside other reasons of a different nature, the taxpayer must file a corrective self-assessment for the latter.

As for the term of presentation, the corrective self-assessment may be submitted before the statute of limitations has expired the right of the Administration to determine the tax debt through liquidation or the right to request the refund that may be appropriate. When presented out of date of declaration will have the character of untimely.

In relation to the content, it must expressly state that it is a corrective self-assessment, the tax obligation and the period to which it refers. For these purposes, the data included in the previously submitted self-assessment that is not subject to modification, those that are subject to modification, and those newly included will be incorporated.

Regarding the effects from the submission of a corrective self-assessment, with the submission of the corrective self-assessment the error is deemed to have been corrected. The corrective self-assessment may correct, complete or modify the self-assessment previously submitted. In particular:

• When the rectification carried out results in aamount to be entered higherto the previous self-assessment or aamount to be returned lowerThe regime provided for supplementary self-assessments in article 122.2 of the LGT and 119 of the RGAT will be applied to the previously self-assessed tax.

• When the presentation of the corrective self-assessment results in aamount to be returned, with said presentation, the refund will be deemed to have been requested and must be processed in accordance with the refund procedure provided for in articles 124 to 127 of the LGT, without prejudice to the obligation to pay late payment interest in accordance with the provisions of articles 120.3 and 31 and 32 of the LGT:

  • The deadline for making the refund will be six months from the end of the statutory period for filing the self-assessment (generally July 25) or from the submission of the corrective self-assessment, if that period has already ended.

  • If a refund was requested upon submission of the prior self-assessment and not issued, the previously initiated procedure is considered complete upon submission of the corrective self-assessment.

• When the correction results in a reduction in the amount to be paid from the previous self-assessment and no amount is due to be refunded:

  • The payment obligation will remain in effect up to the limit of the amount to be paid resulting from the corrective self-assessment.

  • If the debt resulting from the previous self-assessment is deferred or divided into instalments, the submission of the corrective self-assessment will be deemed to have been requested to modify the conditions of the deferral or instalment in accordance with the provisions of the second paragraph of section 3 of article 52 of the General Collection Regulations, approved by Royal Decree 939/2005, of July 29.

The corrective self-assessment will not have any effect on those elements that have been regularized through provisional or definitive liquidation in accordance with article 126.2 and 3 of the RGAT.

Finally, in relation to the fiscal consolidation regimeFor this 2024 tax period, the corrective self-assessment figure has not been implemented in form 220, without prejudice to the possibility that each dependent entity in a tax group may submit corrective self-assessments with respect to their corresponding form 200. In such cases, if necessary, the parent company of the group must submit a supplementary self-assessment or a request for correction of the self-assessment of the tax group's Form 220.