Spain Payroll Compliance Map

Email: bcn4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak German, English and Chinese.
skype: burlinna

WWT – Spain Payroll Income Tax Deduction

WWT-ES-01 WWT Tax Entity

Is the Spain salary income tax levied in national or local? Or both national and local?
Are the national and local personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Evershine RD:

The central government generally enacts laws relating to income tax, but the 17 autonomous communities also have some power to levy taxes.
15 autonomous communities have varying progressive income tax rates that are added to rates provided by the National general tax scale.
2 autonomous communities namely Basque Country and the Navarre community coordinate their tax systems with the National Tax Authority and therefore have nearly identical income tax structures.
The Personal Income Tax Law specifies nationwide income tax withholding rates for residents pertaining to employment income.
Effective starting Jan. 1, 2021, the rates, and applicable ranges of income for residents of Spain, except residents of Basque Country and Navarre, are as follows:

For income in general, the national set of income tax brackets for residents of Spain, except residents of Basque Country and Navarre, is as follows:

WWT-ES-02 Registration

The Spain salary income tax collection is under the jurisdiction of which government unit?
The registration of the Spain salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate
What is the advance certificate the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Evershine RD:

The Spanish tax bureau is called the “Agencia Estatal de Administracion Tributaria”, or the AEAT or Spanish Tax Administration Agency.
All employers must submit Form 36: Declaration of Registration, Modification, and Removal in the Census of Employers (Declaracion censal de alta, modificacion y baja en el censo de Empresarious, Profesionales y Retenedores) and obtain a Tax Identification Number (Numero de Identificacion Fiscal, NIF) from the provincial delegation of the Tax Agency, before initiating commercial activities.

WWT-ES-03 WWT Order (OD)

What is the order of Spain salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Evershine RD:

Deposit First (DF): Make monthly payments then file the required forms.

WWT-ES-04 Mechanism of Filing (MOF)

Spain’s salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Evershine RD:

Payment and reporting obligations vary according to withheld amounts.
Private employers that are considered to be large companies must make monthly income tax payments while all other private employers may choose to pay and report on a quarterly basis.
A large company is one that had gross revenue of at least Euro 6,010,121.04 in the previous year.
Monthly payments are due by the 20^th of every month for withheld amounts from the previous month, while quarterly payments are due the 20^th of January, April, July, and October.

Along with monthly payments, employers must complete Form 111: IRPF Withholdings at Source and submit it to the Ministry of the Treasury.
Additionally, all employers must file annual returns by Jan. 20 for nonelectronic filings and Jan. 31 for electronic filings.
To file, employers should submit an Annual Summary of Income and Withholdings, or Form 190, to the Ministry of the Treasury.
Employers must also provide all employees with a certificate detailing all withholdings performed in the previous year by Jan. 20.

WWT-ES-05 Mechanism of Payment (MOP)

What is the funding method for the Spain salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Evershine RD:

Monthly payments are due by the 20^th of every month for withheld amounts from the previous month, while quarterly payments are due the 20^th of January, April, July, and October.

BNF – Deduction of Employee Social Welfare

BNF-ES-01BNF Entity

Spain social insurance, medical insurance, pensions, and other employee social welfare levy, is it national?
Is it local? Or is there a national plus local?
If there is a national and local, are they levied separately?
Or levied together? What is the withholding tax rate?

Evershine RD:

Group 1

BNF-ES-02 Registration

Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Evershine RD:

Social Security in Spain is administered and regulated by the National Social Security Institute (Instituto Nacional de la Seguridad Social, abbreviated as INSS).

All employers must enroll in the Social Security system and obtain a Social Security number for every province where they operate by submitting Form TA.6 – Application to join the social security system and Form TA.7 – Application for affiliation, termination, and data changes for a contribution account to the National Social Security Institute.
Registration should be completed before the onset of commercial activities.

Additionally, all employers should register their workers in the Social Security system by submitting Form TA.8 – Application to change a worker’s contribution account to the National Social Security Institute within 6 days of the date of hire.

BNF-ES-03 BNF Order (OD)

What is the order of the withholding declaration of social welfare for Spain employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Evershine RD:

Same Period: Report and pay at the same time.

BNF-ES-04 Mechanism of Filing (MOF)

What is the method of reporting for withholding of social benefits for Spain employees (information flow determines the tax base)? Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Evershine RD:

Employers must make monthly Social Security payments and filings.
To do so, employers must make Social Security payments by the end of the month following the month when remuneration was paid upon which the due social security contributions were assessed.

BNF-ES-05 Mechanism of Payment (MOP)

What is the funding method for Spain employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Evershine RD:

Payments and filing can be made online or by cash, bank transfer, credit or debit card, and other methods.
The Spanish government required an increasing number of companies to enroll in a direct payment system for companies making social security contributions for their employees.
The General Social Security Treasury (GSST) has a monthly process of directly billing employers for social security contributions, removing the necessity for employers to calculate contributions themselves.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in December 2022.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Barcelona Evershine BPO Service Limited Corp.
Email: bcn4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak German, English and Chinese.
skype: burlinna

or
For investment structure relevant to multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4bcn@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
LinkedIn address:Dale Chen

Additional Information

Evershine CPAs Firm Headquarter
6th Floor 378 Chang Chun Rd., Taipei City, Taiwan ROC
Partner Kerry Chen,  USA Graduate School and a well-English speaker
Tel No.: +886-2-27170515 ext. 105
Mobile: +886-939357000
Email: kerrychen@evershinecpa.com
Skype: oklahomekerry

Evershine has 100% affiliates in the following cities:
Headquarter, Taipei, Xiamen, Beijing, Shanghai, Shanghai,
Shenzhen, New York, San Francisco, Houston, Phoenix Tokyo,
Seoul, Hanoi, Ho Chi Minh, Bangkok, Singapore, Kuala Lumpur,
Manila, Dubai, New Delhi, Mumbai, Dhaka, Jakarta, Frankfurt,
Paris, London, Amsterdam, Milan, Barcelona, Bucharest,
Melbourne, Sydney, Toronto, Mexico

Other cities with existent clients:
Miami, Atlanta, Oklahoma, Michigan, Seattle, Delaware;
Berlin, Stuttgart; Prague; Czech Republic; Bangalore; Surabaya;
Kaohsiung, Hong Kong, Shenzhen, Donguan, Guangzhou, Qingyuan, Yongkang, Hangzhou, Suzhou, Kunshan, Nanjing, Chongqing, Xuchang, Qingdao, Tianjin.

Evershine Potential Serviceable City (2 months preparatory period):
Evershine CPAs Firm is an IAPA member firm headquartered in London, with 300 member offices worldwide and approximately 10,000 employees.
Evershine CPAs Firm is a LEA member headquartered in Chicago, USA, it has 600 member offices worldwide and employs approximately 28,000 people.
Besides, Evershine is Taiwan local Partner of ADP Streamline ®.
(version: 2024/07)

Please send an email to HQ4fra@evershinecpa.com

More Cities and More Services please click Sitemap