Income to be booked to a current tax account

Do you have any income to declare on your tax return? Of course, If you use a good comprehensive business expense management system, you'll already be aware of it. What you might not yet know is whether you can benefit from this system or not, nor what type of credits or debts are recorded in this way. Therefore, clarifying those points is the first step.

[cta_hubspot id=24593]

The application procedure for to join the tax current account system It can be carried out at the Tax offices, via the internet, through the Post Office, or by other means provided for in Article 16 of the Law 39/2015.

Who can benefit from the tax current account system?

Those who meet the following six requirements can opt for the tax current account system in our country:

Business owners who submit VAT self-assessments and who have not opted out of the tax current account system.
Registered on the Business Census and the Economic Activities Tax.
That they have submitted the self-assessments and information returns for the corresponding advance payments, when necessary, as well as the annual VAT summary return.
With credits recognised in the current tax account of at least forty percent of the debt amount for the financial year immediately preceding the application.
With no outstanding debts or tax penalties, except for those that are suspended, deferred, or being paid in instalments.
No pending civil liabilities arising from offences against the Public Treasury to be paid, when declared by a final court ruling.

Estas condiciones se recogen en el Article 138 of Royal Decree 1065/2007, 27 July; whereas, In the following document, it is explained what debts and types of income should be recorded in the tax current account.

What are the debts and types of income to record on a tax current account?

Types of income to note on a tax current account

The amounts of tax credit for returns recognised for businesses that can avail themselves of this system can be registered, provided it is during the applicable period.

Specifically, The types of income to be recorded in the tax current account are those corresponding to Corporate Tax, Personal Income Tax, VAT, and Non-Resident Income Tax if these obtain income through a permanent establishment..

Debts to be recorded in the tax current account

It is precise to officially record, with a negative sign, all those debts “which result from self-assessments whose declaration or payment deadline ends during the period in which the current account system in tax matters is applicable.

Specifically, these are concepts such as Value Added Tax, Corporation Tax, Income Tax and Non-Resident Income Tax (in the case of taxpayers).

What types of debt or income should never be recorded in the tax current account?

Some may raise the question of whether the refunds recognised in special review procedures would be considered a type of income to be noted in a tax current account. The answer is no., nor are those arising from self-assessments submitted late.

Likewise, tax debts such as those incurred for VAT on import operations or those arising from provisional or definitive assessments carried out by the tax administration bodies should not be recorded.

[cta_hubspot id=24736]