Forms 111 and 190: Annual Tax Closure Explained

With the arrival of December, all companies begin to prepare, if they were not already doing so, the closing of the year. One of the main issues to end the year on a good note is to be up to date with tax obligations. The 111 and 190 Personal Income Tax forms put an end to the tax year, opening the way to the next year.

These two forms have a very close relationship. Both are a declaration of the withholdings made in the IRPF in an established period of time. These withholdings are made both for workers via payroll, as well as for self-employed professionals and entrepreneurs. The difference in these two forms is the period of time they cover. While form 111 is a quarterly form, form 190 is an annual summary of the same concept.

Form 111: Quarterly withholding tax return

As we have already explained, the difference between forms 111 and 190 is in the time period. Form 111 is a document used to declare and deposit the withholdings made on certain payments during a quarter. The presentation of this form is mandatory for all persons, whether individuals or legal entities, who are obliged to make payments on account. The payments on account are the amounts that the payer takes from the employee’s income and deposits them in the Public Treasury.

What payments are declared on form 111?

1. Income from work: Salaries and other payments to employees.
2. Income from economic activities: Invoices of self-employed professionals.
3. Prizes and certain capital gains.
4. Urban leases subject to withholding.

Deadlines for filing form 111

Form 111 is filed quarterly. Once the quarter has expired, a period of 20 days is opened to file this form. Therefore, we have 4 deadlines to file it: in April, July, October and January of the following year. However, it must be taken into account that, if the result is to be paid and the payment is made by direct debit, the deadline is reduced to the 15th day of the corresponding month.

Form 190: Annual summary of withholdings

Form 190 is the annual complement to Form 111. While the latter is a quarterly form, Form 190 compiles all the information for the corresponding tax year and breaks down the data in greater detail. The parties obliged to file are the same as with form 111.

Additional information on Form 190

As this form is a more detailed and extensive declaration than form 111, there is a series of information that is not included in the latter, but which must be provided in the former:

1. Information of the recipients: in the form 190 the complete data of each recipient of the income must be included. These data serve to identify each of the employees or workers for whom payments on account have been made during the year. It is necessary to include the NIF, name and surname (or company name if we are talking about a legal entity) and the postal code and province.
2. Types of income broken down: The form specifies the different types of income that a person can receive, with an individual breakdown for each one. Each type of income has a specific code that must be indicated on this return.
3. Taxable income and withholdings per recipient: Form 111 does not require a breakdown of taxable income, withholdings or possible deductible expenses. However, the 190 does require these declarations to be made.
4. Data on the nature of the income: As it is a more detailed return, the 190 allows additional information to be included depending on the nature of the income, such as some specific allowances or deductions.
5. Receivers with regularization: if there is any case in which a regularization of withholdings has been made during the fiscal year, it must be declared when filing this document.

Deadline for filing

Form 190 must be filed between January 1 and 31 of the year following the fiscal year declared.

Common errors in forms 111 and 190 and how to avoid them

Differences in the amounts: It is possible that, at the time of filling in form 190, the information does not match what is presented in form 111. To avoid having different information in what is presented throughout the year and the final breakdown, it is advisable to make sure that the bases and withholdings coincide between the forms.

Omission of payees and errors in the data: As we have already indicated, in this model it is necessary to identify each of the income recipients to whom withholdings have been made for payments on account. It is important to verify that all the employees, professionals or entities withheld are included in the return. It is also good to review all the personal data, to verify that they are correct before filing the tax return.

Do you need help with your company’s labor management?

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At Vasalto, we believe that communication between people is fundamental. We make technology available to people, never the other way around. We work with technological automation solutions so that IT takes as much work off our hands as possible. This way, we have more time to dedicate to our customers.

If you are interested in learning more about international recruitment or any matter related to your company’s payroll or accounting, at Vasalto we will be happy to help you. Contact us to get to know us and see how we can help your company.