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 for an SME is the rent for the offices where the business operates. In addition to informing the Tax Agency (with form 036), you must apply an income tax withholding that you will have to declare quarterly. This is what form 115 is for.
Your complementary model is the informative annual model 180, which summarises all the annual 115 forms.
If you have a rental agreement, this document must be kept with your tax records. This applies whether you are self-employed or a company. There are only a few exceptions:
Nowadays, it is possible to submit the corresponding form for Model 115 both physically and online. Hacienda website. You will also find it there help to fill it in correctly.
Regarding the dates, you will need to be mindful as you will have to declare it quarterly. Remember this calendar:
Don't forget to fill in form 180 at the end of the year either, which is the annual version of form 115.
This last one is about a Quarterly income and expenditure statement under which advances of 20% are paid against the income tax return (just as happens with employees' salaries from which income tax is deducted from their salary each month). As we say, with form 130, you pay a 20% of activity performance.
All the self-employed and business owners. However, professionals who apply a withholding tax of 70%% on their invoices (as a minimum) are exempt from submitting form 130. Business owners registered in an activity classified as business-related and those who participate in a community of property according to their corresponding income could also be exempt.
Just like model 115, it is submitted quarterly, so you can do both at the same time. Keep in mind that when you generate model 130 for the second, third, and fourth quarters, you will have to add the previous models again.
You should also be aware that you will always have to submit it even if you have had neither income nor expenses during the corresponding quarter.
If you have any doubts about how to fill it in, you can refer to the part The Tax Agency's support programme.
Therefore, remember, as an SME, every quarter, you must You will need to submit two forms to Hacienda: Form 115 and Form 130. The first for office rent and the second based on your economic activity.
