The income tax filing season is imminent. Although there is time to prepare the return and submit it by the upcoming July 1, it is wise to start sooner, especially if it is suspected that more tax has been withheld than needed and a refund is expected. Acting early helps avoid last‑minute rushes and potential forgetfulness.
Failing to file the income tax return when there is an obligation to do so can lead to penalties of up to 20% of the amount owed to the tax authority, depending on how late the submission occurs. The minimum penalty is 5%. If the tax authority owes a refund, the penalty is fixed at 100 euros.
In addition to these fines, taxpayers may face further sanctions for mistakes in calculating declared income, making incorrect payments, failing to include the Tax Identification Number (NIF), or submitting false deductions and documents.
Common mistakes
Another frequent error when completing the income tax return is the fiscal domicile, that is, the location of the taxpayer, whether an individual or a legal entity. Misstating the fiscal domicile can seem trivial, but it is fined by the Tax Agency with penalties of up to 100 euros.
Therefore, it is advisable to carefully review all tax data, including all items with tax relevance that the Tax Agency holds, such as withholdings and incomes. This information is essential for preparing the income tax return and is available on the Tax Agency’s website.
If a mistake is eventually made in the declaration, a supplementary return must be filed to correct it.