If you are a businessman and you have just realized that you will not be able to file your tax return on the dates established by the Tax Agency, did you know that there is a way to defer the payment of taxes in Spain? Would you like to know in which cases it applies and how the process works? Continue reading this article to learn more about it!
What does tax deferral mean?
As we have already mentioned before, complying with tax obligations is an indispensable requirement demanded by the Treasury today, for which there is a tax calendar to which we must adhere as taxpayers.
However, in some circumstances you may proceed to request a deferral of your taxes. And what does this mean? As its name suggests, it refers to delaying or deferring the payment of the tax debt in question, in relation to the agreed date according to the corresponding tax year.
Which taxes can be deferred?
However, it is important that you have accurate knowledge about which taxes are possible to defer and in which cases it is not feasible to carry out this procedure.
In this sense, as a general rule, it is established that the main installment payments and quarterly settlements to be made by businessmen, self-employed and professionals can be deferred. These are:
Personal Income Tax (IRPF) can be in direct or objective estimation, corresponding to forms 130 and 131.
Value Added Tax (VAT), corresponding to the form 303
On the other hand, with regard to annual taxes, it is possible to defer the Corporate Income Tax, corresponding to Form 200.
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Which taxes cannot be deferred?
In any case, there are certain cases in which it will not be allowed to defer the payment of tax. These are:
Withholdings and payments on account declared with forms 111, 115 and 123
Corporate income tax installment payments, referring to Form 202
Executions of final rejection resolutions suspended in claims or appeals
How to defer the payment of taxes?
In order to be able to defer the payment of taxes in Spain, it is important that you process your request within the corresponding deadline, that is, at the time of carrying out the self-assessment. However, you will have 3 ways to do it:
In the organism
In this case you must acknowledge the debt to request the deferment and you will be informed about the installment and the repayment period. You should know that this option is only viable for amounts less than 30,000 euros.
With a bank guarantee
In this case it is the bank that pays the tax debt, which will generate commissions to be paid in the future and the process will be registered with the public debt agency.
With surety insurance
Through an insurance company you will be able to pay a down payment to cover the debt to the Tax Agency.
The surety insurance will allow you to guarantee to the Tax Authorities that as a businessman or self-employed person you are committed to comply with the amount to be paid, as long as they are higher than 30,000 euros.
Advantages of surety insurance
This type of guarantee has the same validity as a bank guarantee, and we can identify the following advantages:
Fast processing and issuance of certificates
You do not have to pay bank commissions
The debt is not registered in the Central Credit Register and your financing capacity will not be affected.
You do not need to tie up your money or have a percentage of it withheld.
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Application for tax deferral
Through the electronic headquarters of the Tax Authorities you can make your online request to defer your tax payments, either at the initial moment when the tax payment is due or on the last day to file the tax return.
So, what should you do? The first step is to fill in the form concerning the tax you wish to defer, and mark “acknowledgement of debt with request for deferral” as the payment method.
Then, it is important that you provide the information required by the Tax Agency, such as: the amount of the debt, direct debit bank account, type of guarantee offered, the reason for the deferment request, among others.
Now that you have managed to start the process, you must take into account the maximum deferment terms, which will be marked depending on the amount of the debt:
For amounts below 30,000 euros
If you are self-employed, you will have a term of up to 12 months.
If you are a company you will have a term of up to 6 months
For amounts in excess of 30,000 euros
You will have a term of 12 to 36 months, regardless of whether you are an individual or a legal entity. Additionally, you will have to provide a series of requirements:
Document evidencing the reason for the postponement
Guaranty or guarantee for tax deferral
Proposed payment schedule
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What is the interest rate for tax deferrals?
In order to enjoy a deferral in the payment of your taxes, the Treasury will charge a percentage of the total debt and, currently, it corresponds to 3.75%.
Escaping from your tax obligations is not an option, but with the deferral of VAT or Personal Income Tax you can comply with the current regulations without incurring penalties that will harm you before the Tax Agency. Therefore, we remind you that in TAS Consultancy we have the right team to advise you in every procedure you need and you can contact us here.