Have you heard about the obligatory of presenting the withholding certificate on the income tax return? In this article we will explain what this document is, who should deliver it and how to obtain it. Whether you provide services or hire them, you are interested in reading this article.
What is the IRPF withholding certificate?
The IRPF withholding certificate is a document that certifies the amount of money that we have already advanced to the Tax Agency through IRPF with holdings that have been paid with invoices to customers or through the payroll of workers. In other words, it is the proof that ensures that the company or self-employed worker have complied with their obligations and have paid the corresponding tax for their services.
In case any client owes any payment, it will not appear in the withholding certificate, since only the amounts paid are recorded.
The information on the certificate must match that of the Tax Agency and can be obtained through the draft of Personal Income Tax. This will facilitate that there are no imbalances, something that would cause a possible inspection of the Tax Agency.
Who must deliver the withholding certificate?
According to article 108.3 of the IRPF regulations, companies, public authorities or professionals to whom services have been rendered and have made income in your name must give you the income tax withholding certificate so that you can include it in the income tax return.
Pursuant to article 206 of Law 58/2003, of December 17, if the withholding certificate is not delivered to the taxpayer, a slight tax infraction will be committed with a sanction of 150 Euros.
Which information does the IRPF withholding certificate includes?
The content of the withholding certificate must be the following:
- Full amount of labor income.
- Withholdings made on these benefits.
- Amount of the judicial retention for food.
- Amount of the reductions for irregular rents.
- Amount of fiscally deductible expenses.
- Arrears corresponding to previous years, indicating the accrual period, withholdings, amount of expenses and full amount.
- Amounts returned by the beneficiaries to the Social Security, indicating the exercise of the collection, the amount unduly received and the amount reimbursed.
- Income exempt from Income Tax with indication of the benefit and the amount paid
How to request the withholding certificate: To the company or to the Tax Agency?
At the time of making the income statement you will need to collect the certificates of all the clients with whom you have worked. You can ask them themselves or at the Tax Agency.
As we have explained before, companies are required to deliver the withholding certificate. However, there may be unforeseen events such as the company ceases to exist, do not give signals or do not have good relations. In those cases, you can get the certificate through the Hacienda website. You must access with an electronic certificate, an electronic DNI or a Cl@ve PIN and follow these instructions.
If you do not have time to deal with IRPF withholding certificates or need help to deliver them along with your income tax return, we recommend that you contact GM Tax. We take care of each case with speed, professionality and proximity.
