In the Tax Agency there are many types of forms to fill out. A person does not have to know all of them, as it happens with companies, freelancers ... but each one corresponds to some. In the case of model 111, Not only do you have to know what it is for, but who has to fill it in and what it includes.
Do you want to know everything about the 111 model? Discover a guide to everything you need to know about this form: what it is for, what it is, who is obliged ...
What is Model 111
Source: Factorial
Model 111 refers to the Quarterly statement that must be made of the withholdings and income on account of personal income tax that apply to workers, professionals or entrepreneurs. That is to say, you have to declare what withholdings and income on account of personal income tax you have in that quarter. Therefore, we are talking about a document that must be presented four times a year, even if it goes to zero (that is, there are no withholdings or negative results).
What is the 111 model for?
The function of the model 111 is basic, it consists of self-liquidate the withholdings that are applied to the workers' payroll, but also to the invoices to professionals, the prizes, capital gains and finally, the imputations of income.
That is why those who are obliged to fill it out are the companies and the self-employed.
Who is obliged to present it
In general, the truth is that the model 111 is a Mandatory document for every company and individual self-employed. But to do so, a requirement must be met: that amounts have been discounted in at least one of the following situations:
- Earnings from work. They are, for example, payroll or settlements.
- In economic and professional, agricultural, forestry, livestock, business activities that are required to retain 1% of either intellectual or industrial property.
- Image transfers.
- The patrimonial gains from forest use in public forests.
- For the prizes received from games or contests.
- And others that involve a transfer of image rights or that a special regime is applied to them.
If any of these causes occurs, the self-employed person or the company would be obliged to present form 111 on a quarterly basis. Otherwise, you would not have to submit it and would only be obliged to other types of forms.
How to file Form 111
If you are self-employed or a company that is obliged to present form 111, then you should know that it must always be paid within 20 calendar days from the end of the quarter. That is, it would be from April 1 to 20, July, October and January, at the same time as the VAT or personal income tax forms if they have to present them.
And how is it to be done? A little later we will help you fill it in, but the presentation, which is what we want to focus on now, is done in two different ways:
- By Internet.
- In person.
Now, the self-employed can choose between these two routes; however, in the case of companies, the Treasury requires that it be exclusively online.
Fill in form 111
Filling in Form 111 is not very mysterious, as it is easy to do. The first thing will be the identification, that is, to determine the data of the company or self-employed person that is going to present this form. Too You must specify the calendar year and the quarter to which the presentation refers.
Then you would have the settlement that would be for income from work. What do you wear? Well, it is necessary to determine what is the number of recipients, the total amount of all of them, as well as the withholdings. Of course, you must differentiate the part in kind from the monetary part.
The next step would be the performance of economic activities, which is done the same as the previous one, that is, determining how many recipients there are, the total amount, withholdings and the difference between the two (cash and in kind).
El point of prizes of contests, raffles, games ... it is only filled in if you have participated. Later we would have the capital gains derived from the forest exploitation of the neighbors in public forests. If there is, it is filled in, and if not, it is left blank. The same for the consideration for the transfer of image rights: payments on account provided for in article 92.8 of the Tax Law.
All of this gives us the total settlement. Now, it may be the case that it is a complementary statement, or that the result is paid or negative (that would be zero).
If it goes out to pay, you have to process it with the bank to be able to finally present it.
When it is paid and what happens if it is not
Source: Holded
If you realize that you have not presented the model 111, you are going to run into a problem. The first thing you need to do is present it, even after the deadline. Why? Well, because if you don't (thinking that the Treasury is not going to realize it) and the Tax Agency realizes it, you are going to have to face a penalty that can range from 200 euros.
According to article 198 of the General Tax Law, the infringement of a person for not presenting the returns without income is slight, but the fine will be 200 euros. Now, if the statement is with income, it may be higher.
Why have we told you that it is better to present it even after the deadline? Because then the Treasury will realize that there has been no bad faith on your part, but that it has been a mistake that you are trying to correct. Do you mean that the fine is taken away from me? No, but yes that you can reduce it to 50%, that is, instead of paying 200 euros, you will pay 100. And, furthermore, if you pay it within a period established by them, instead of paying 100 euros, they will give you a 25% discount, that is, you will pay 75 euros.
As you can see, form 111 has a reason for being, but there are also important aspects, such as knowing how to fill it in correctly, knowing if you have to present it and knowing the consequences of not doing so. If you have more questions about this form from the Treasury, you just have to tell us and we will try to give you a hand.