WHAT HAPPENS IF YOU DO NOT FILE YOUR IRPF ON TIME?

Income tax is the tax on the income of individuals (IRPF) and taxes the income of individuals obtained during a calendar year. Each year the income tax of the previous year must be presented, therefore in 2020 the income obtained in 2019 is taken into consideration.

If a someone has been a tax resident in Spain in 2019 (has remained for more than 183 days in Spanish territory), he will need to file the Spanish tax return , including  all his worldwide income.

This year, 2020, the deadline for filing the tax is from April 1 to June 30, 2020. But these are not the only relevant dates for the filing period, others must be considered:

· 25 June: Deadline for direct debit

· June 30th: Deadline for filing.

If the tax return is not filed before June 30th, the Spanish Tax Authorities may impose fines and penalties .

It is important to note that the consequences are less severe if the tax return is submitted before the Spanish Tax Authorities request it. When the deadline expires, the best you can do is to avoid being claimed by the Spanish tax authorities, otherwise you will face a higher penalty.

1 .Voluntary File the Income Tax Return.

The consequences depend on the outcome of the Income Tax return. There are two scenarios: negative tax return or pay.

· Negative Tax Return: you will have to pay a fine of 200 euros.

· To pay: in this case you will have to pay the amount of the Income Tax Return plus the following surcharges:

– If you file the Income Tax Return within 3 months of the end of the set period: 5%.

– If you file the Income Tax Return between 3 and 6 months: 10%.

– If you file the Income Tax Return between 6 and 12 months: 15%.

– If you file the Income Tax Return12 months later: 20% plus interest.

2. Tax filing with Spanish Tax Authorities requirement.

If the Spanish Tax Authorities detect that you have not filed the Income Tax Return in time, they will send you an application to do so or to justify why you have not filed the Income Tax Return. If you cannot justify the delay, the Spanish Tax Authorities may impose the following penalties:

• Minor offence:  the fine will be 50%;
• Serious offence: the fine will be between 50% and 100%
• Very serious offecne: the fine  will be 150%.

Therefore, it is important to make the Income Tax Return before the deadline to avoid paying more money to Spanish Tax Authorities. If you have not yet made your Income Tax Return we can help you with this matter.

At Goy Gentile we are at your disposal for any question related to the filing of the IRPF.

Contact:

Lucía Goy Mastromiechele

luciagoy@goygentile.com

+34 626 118 451

María Ribas Sáez

mariaribas@goygentile.com

+34 604 51 06 66

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