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.

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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 current tax 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 the self-assessments and informative returns for the corresponding payments on account have been submitted, when necessary, as well as the annual summary VAT return.
With recognised credits on the tax current account of a minimum of forty percent of the debt amount, for the financial year immediately preceding the application.
Without outstanding debts or tax penalties, with the exception of those that are suspended, deferred, or instalment-based.
No outstanding civil liabilities arising from an offence against the Public Treasury to be paid, when they have been declared by a final court ruling.

Estas condiciones se recogen en el Article 138 of Royal Decree 1065/2007, 27 July; whereas, The following explains which debts and types of income should be recorded in a tax current account.

What debts and types of income should be recorded in a tax current account?

Types of income to note on a tax current account

The amounts of tax credit for returns recognised by businesses that can benefit from this scheme can be recorded, always during the valid period of application.

Specifically, The types of income to be recorded in the tax current account are those corresponding to Corporation Tax, Personal Income Tax, VAT, and Non-Resident Income Tax if they derive 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, it concerns concepts such as Value Added Tax, Corporation Tax, Personal 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 proceedings 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 arising from VAT on import operations or those resulting from provisional or definitive assessments made by the tax administration bodies should not be recorded.

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