Small and medium-sized enterprises are not exempted from reporting to the tax authorities the Personal Income Tax (IRPF). Moreover, in order to comply with their duty they have to file two forms: the 115 and the 130.
Here we explain what each one of them is for, how it works, who is exempt... to eliminate all doubts about the IRPF declaration in an SME.
One of the most common expenses of an SME is the rent of the offices where the business is carried out. In addition to informing the tax authorities (with form 036), you have to apply a withholding on account of personal income tax, which you must declare on a quarterly basis. Form 115 is used for this purpose.
Its complementary form is the annual form 180 of an informative nature that summarises all the forms 115 of the year.
If you have a lease, this paper should be among your documentation for the tax authorities. Whether you are self-employed or a company. There are only a few exceptions:
Nowadays, you can submit your paper Form 115 both physically and online at the Tax Agency website. There you will also find help to fill it in correctly.
As for the dates, you will have to be attentive because you will have to declare it quarterly. Remember this calendar:
At the end of the year, don't forget to fill in form 180, which is the annual version of form 115.
The latter is a quarterly statement of income and expenditure by which advances of the 20% are paid on account of the income tax return (as happens with the pay slips of workers who have their personal income tax deducted from their paychecks each month). As we have said, form 130 is used to pay a 20% of activity performance.
All self-employed persons and entrepreneurs. However, professionals who apply a withholding tax of 70% to their invoices (as a minimum) are exempt from filing form 130. Those entrepreneurs who are registered in an activity classified as a business and those who participate in a community of goods may also be exempt, depending on the income corresponding to them.
Like form 115, it is filed quarterly, so you can file both at the same time. Please note that when you generate form 130 for the second, third and fourth quarters you will have to add the previous forms again.
You should also be aware that you must always file it even if you have had no income or expenses during the corresponding quarter.
If you have any doubts about how to fill it in, you can consult the section The Tax Agency's support programme.
Therefore, remember, as an SME, every quarter, you must you will have to file two forms with the tax authorities: the 115 and the 130. The first one for the rent of the offices and the second one depending on your economic activity.
