Certificate of withholdings and income on account of the IRPF

The IRPF withholding and income certificate is a document that companies give to their workers in Spain so they can make their income tax return. This document includes all the remuneration that workers have received throughout the year. It also includes deductions and withholdings that have been applied on payrolls.

The employer is obliged to deliver this document so that the workers can make their income declaration. Therefore, it is our company that must deliver it to us.

Each quarter, the employer must submit to the Treasury model 111 in which the withholding income tax payroll. The employer does not pay these amounts but retains them from the payroll of his employees. Once paid you must give us the certificate of withholdings and income on account of the IRPF, which can be found on the website of the Tax Agency .

The 111 model

In the certificate of withholdings and income on account of the IRPF is collected in an official document called model 111. As we have seen previously, it must be delivered quarterly to the Tax Agency and it must detail all the withholdings made by the company in concept of Personal income tax

When January arrives, the employer must submit the last quarterly model and must also submit another annual informational model that specifies the following:

  • Payments by way of retribution.
  • Deductions for social contributions.
  • Withholdings for personal income tax.

Withholdings and unemployment

For the purposes of personal income tax, the Public Employment Service is considered one more payer. Therefore, it will have the same treatment as any other company, which is why the SEPE will have the obligation to issue the corresponding withholding certificate for those people who are collecting unemployment benefits. However, the withholdings that support someone who collects the unemployment benefit will be much lower than those that a person with work supports. This is because someone unemployed is in a much more vulnerable economic situation and will need to dispose of all their income.

Errors in the withholding certificate

There is the possibility of errors in the calculation of withholdings. The Tax Agency must clarify whether the error is attributable to the company or the worker. If the error is the fault of the worker, it will be the one who pays the most personal income tax, while if the fault is the responsibility of the company, it will be the one who pays the difference for a wrong calculation of the withholdings

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