Form 111 is a monthly or quarterly statement of personal income tax withholdings made to workers, professionals and businessmen. It is a model that must be presented by the self-employed and companies with workers hired on the payroll or who have contracted services to freelancers who bill them with deductions.

Who has the obligation to submit the Form 111?

Any type of employer, professional or company that monthly or quarterly (it will be monthly for Large Companies) has withheld (discounted) part of the amounts corresponding to employee payroll, professional invoices, purchase invoices for some activities, and other less frequent cases.

It means that, every one or three months, the self-employed, or the SME, has to deliver to the Treasury the percentage of money that they have not paid to their workers on the payroll, or to other self-employed professionals on the invoices, to deliver it to the administration in name of these. It is a money on account that the Treasury later returns, as appropriate, to the worker or employer, via the personal income tax return.

A withholding will have to be applied in the following cases:

  • Work income: payroll, settlements, etc.
  • Income from some economic activities:
    • Professional activities, for example, to an advisor
    • Agricultural and livestock activities
    • Forestry activities
    • Business activities in objective estimation (activities in modules that are obliged to retain 1%)
  • Intellectual, industrial property, mines, etc.
  • Prizes for participation in games, contests, raffles, etc.
  • Capital gains from forest use in public forests
  • Transfer of images art, 92 LIS.

When has the Form 111 to be submitted?

Persons or entities that are considered large companies, in the first 20 calendar days of each month in relation to the amounts and payments on account that correspond to the immediately preceding month.

The remaining natural persons, legal entities and other entities obliged to withhold or deposit on account, in the first 20 calendar days of the months of April, July, October and January in relation to the amounts and payments on account that correspond for the calendar quarter immediately preceding.

If the end of the term coincides with a Saturday, Sunday or holiday, the term will be until the next business day.

At the end of the year, coinciding with the fourth quarter (Q4) or 12 monthly periods, an annual summary of all withholdings for the year is presented, detailing the identity of the recipients: annual summary of form 190.

In case of questions about form 111, do not hesitate to contact our Arintass team, our experts are at your entire disposal.

Ramón Sánchez

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