What is the Form 123?

Form 123 is a tax return to be filed by individuals, legal entities and other entities obliged to withhold or pay on account of Personal Income Tax, Corporation Tax and Non-Resident Income Tax (IRNR) with income from movable capital.

Form 123 is used to declare income from movable capital such as the payment of interest on non-bank loans or the distribution of dividends.

Income from movable capital are profits and considerations that come from assets of a movable nature, that is, different from real estate that are not involved in economic activities carried out by the taxpayer.

Who is required to file Form 123?

Self-employed, SMEs and Communities of Assets must present form 123, obliged to withhold or pay on account of Personal Income Tax, Corporation Tax and Non-Resident Income Tax, which satisfy income from movable capital. We are talking, for example, of a company that distributes dividends or a businessman that pays interest on non-bank loans.

Income from movable capital exempt from withholding tax must be declared, but if the result is zero, the negative declaration box must be ticked.

How to file and pay Form 123?

This form can be filed in person, only in the case of individuals, in collaborating entities of the Treasury, or online, using a digital certificate, at the electronic office of the Tax Authorities.

When the result of the liquidation is to be paid and the payment is made by direct debit, it can only be filed electronically and without having to go to the bank, as the Treasury will debit the amount of the result from your account on the 20th day of the months of filing.

When the result is to be paid and the direct debit is not chosen, the settlement must be at any branch where they deliver a proof of payment, which contains the necessary Full Reference Number (NRC), to make the submission of the form in the electronic office of the Treasury. Form 123 is completed with the NRC and submitted electronically.

Form 123 filing deadlines

The periodicity of the form is quarterly, coinciding with the deadline for filing quarterly VAT and Personal Income Tax obligations.
The filing deadline is established as follows:

  • First quarter: from 1st to 20th April
  • Second quarter: from 1st to 20th July
  • Third quarter: from 1st to 20th October
  • Fourth quarter: from 1st to 30th of the following year. During this period, the annual summary, Form 193, must also be filed for information purposes.

In the case of large companies (volume of operations exceeding 6,010,121.04 euros), the filing will be monthly, as for the rest of the taxes.

If you have any questions about how to fill in Form 123, do not hesitate to contact Arintass, who will clarify all your queries.

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Financial Accounting Specialist