FAQs

The penalty regime applicable to the informative declaration (Form 720) is the general regime established in articles 198 and 199 of Law 58/2003, of December 17, General Tax Law. Its regulatory development is contained in articles 14 and 15 of Royal Decree 2063/2004, of October 15, which approves the General Regulations of the Tax Sanctioning Regime.

These articles (both in the Law and in the Regulation) regulate respectively the tax offence of not submitting self-assessments or declarations on time without causing economic damage to the Public Treasury, and the tax offence of incorrectly submitting self-assessments or declarations without causing economic damage to the Public Treasury.

These penalties are applied independently for each of the three information obligations contained in the information declaration model 720, as each of them constitutes a different information obligation.

In this specific case, in the event of failure to submit the information declaration (Form 720), the tax offence for not submitting self-assessments or declarations on time without causing economic harm to the Public Treasury would apply (regulated in articles 198 LGT and 14 of the General Regulations of the Tax Sanctioning Regime).

Regulations:

Articles 198 and 199 of Law 58/2003, of December 17, General Tax Law (articles 14 and 15 of the General Regulation of the Tax Sanctioning Regime) establish the tax violations applicable to the informative declaration model 720.

This regime of infringements and sanctions is established independently for each of the three reporting obligations.

Each of the blocks of information below is a different reporting obligation:

• Accounts in financial institutions abroad. This reporting obligation is governed by Article 42 bis of the General Regulations on the actions and procedures of tax management and inspection and on implementation of the common rules of procedures for the application of taxes, approved by Royal Decree 1065/2007, of 27 July.

  (In Model 720 it corresponds to the value of the “Type of asset or right code” “C”)

• Securities, rights, insurance and income deposited, managed or earned abroad. This reporting obligation is governed by Article 42 ter of the above-mentioned General Regulations approved by Royal Decree 1065/2007, of 27 July. (In form 720, it corresponds to the values of the field 'Type of asset or right code' 'V', 'I' and 'S').

• Real estate and rights to real estate located abroad . This reporting obligation is governed by Article 54 bis of the General Regulations approved by Royal Decree 1065/2007, of 27 July. (In form 720, it corresponds to the value of the 'Type of asset or right code' 'B')

  Articles 42 bis, 42 ter and 54 bis of Royal Decree 1065/2007, of July 27, also establish the definition of the concepts: “data” and “data set” for the purposes of imposing penalties for the commission of tax offences.

In this case, article 199 of the LGT and 15 of the General Regulations of the Tax Sanctioning Regime apply, which regulate the tax infringement of incorrectly submitting self-assessments or declarations without economic harm to the Public Treasury.

This regime of infringements and sanctions is established independently for each of the three reporting obligations.

It will be necessary to comply with the provisions of articles 42 bis, 42 ter and 54 bis of the RGAT, which include each of the three information obligations contained in the information declaration (form 720) and also establish the definition relating to the concepts: “data” and “data set” for the purposes of imposing sanctions for the commission of the indicated tax offence.