FAQs

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

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

These sanctions 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.

For this specific case, in the event of failure to submit the information return (Form 720), the tax violation for not submitting self-assessments or declarations on time would be applicable without causing economic damage to the Public Treasury (regulated in articles 198 LGT and 14 of the General Regulations of the Tax Penalty Regime).

Regulations:

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

This regime of infractions 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 “Key type of good or right” “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 over 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 sanctions for the commission of tax violations.

In this case, article 199 LGT and 15 of the General Regulations of the Tax Penalty Regime are applicable, which regulate the tax violation for incorrectly submitting self-assessments or declarations without economic damage to the Public Treasury.

This regime of infractions 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 informative declaration (form 720) and also establish the definition related to the concepts: “data” and “data set” for the purposes of imposing sanctions for the commission of the indicated tax violation.