The income statement is an annual reporting process in Spain that aligns taxpayers’ earnings and expenses with the national tax authority to determine the tax due for the year. Keeping tax obligations current helps prevent penalties and fines and ensures a smooth financial year end for individuals and households.
In Spain, the income statement is filed in the period between April and June of the year after the reference year. For example, the report filed in 2023 covers income and expenses from the prior year, 2022, and it provides a clear snapshot of a taxpayer’s fiscal position for that period.
2023 income statement draft
To smooth the filing process, the tax administration offers a draft income statement to taxpayers. This draft includes Personal Income Tax details, withholdings, deductions, and other tax data collected by the Treasury. It serves as a preliminary return, outlining the tax information before final submission.
The tax authority makes the draft available to taxpayers to review. The draft can be updated as needed before submission. If the draft accurately reflects the taxpayer’s situation, the individual can confirm it online, which allows for direct submission without preparing a fresh full return.
Submitting the confirmed draft means the Treasury accepts the data as accurate and proceeds automatically with the information shown in the system.
If the draft appears inaccurate, incomplete, or suboptimal, the taxpayer can choose to submit a full declaration by other approved methods within the designated deadline.
OCU cautions about errors in the Income Draft: what to review carefully before submitting
The key point is that the income statement draft is optional; a full, alternative return can also be filed if needed. It is crucial to review the draft thoroughly to ensure every data point is correct and complete.
Choosing between individual and joint income reporting
The decision between filing individually or jointly depends on the taxpayer’s personal situation and the potential tax outcomes. It is worth evaluating which option yields the best result for the household before submitting any returns.
When can the 2023 draft be viewed?
According to the tax calendar for the 2023 cycle, taxpayers can request the draft online starting April 11. The deadline for submitting the income statement remains June 30 in most cases.
Additional dates may vary depending on the action chosen within the 2023 calendar. For taxpayers who prefer the treasury to arrange the income statement by phone, appointments can be made from May 3 to June 29. In such cases, the submission window begins May 5 and closes June 30.
Do retirees need to submit an Income Statement?
For those who opt to have the income statement filed in person rather than by phone, the process follows a different timeline. The filing window for in-person submissions typically runs from June 1 to June 30, with some steps available from late May to late June depending on local arrangements.