Model 111 is one of the most used by businessmen in our country. Being mandatory for all those employers who have workers under their charge to whom withholdings apply. We tell you everything you need to know about it.
The Tax agency It has different models that we must present depending on its objective. Some of them are more general in nature, others more specific. But they are all important to have good communication with the Treasury. In this article we focus on the model 111, whose official name is “Withholdings and payments on account. Income from work and economic activities, prizes and certain capital gains and income allocations.
What is model 111?
He model 111 of the Tax Agency is used to declare to the State Tax Administration Agency everything that has to do with personal income tax withholdings applied to payments made quarterly to employees, professionals or businessmen. Whenever withholdings are applied, the declaration is mandatory. The only case in which it is not necessary to carry out the presentation is when the withholdings are zero.
Through this model, we seek anticipate tax collections about income. When an employer pays an employee, he retains a portion of that salary as personal income tax, which he then delivers to the state through this model. Exactly the same occurs in the event that the payment is not to a businessman, but rather to a self-employed person. This advance is very important, since once a year it is regulated with the model 100also known as the statement of income.
Thus, the model 111 It is essential to ensure that income taxes are collected systematically and distributed throughout the year, making it easier for taxpayers to comply with their tax obligations and allowing the state to have a constant source of income to finance public expenses.
Who has to present this model?
As it happens with the rest of the tax models, One of the most common doubts is knowing who has to present it. As we have already anticipated, any company or self-employed person that is in one of these situations is obliged to present it:
- Have workers to whom personal income tax withholding is applied to their payrolls
- Receive invoices from other professionals that include personal income tax withholdings
- Be involved in agricultural, livestock or forestry activities that are subject to withholdings.
Furthermore, one of the aspects that not everyone knows is that it is necessary to present it if we are winners of a draw in which we receive a cash prize, for example. These are the submission deadlines:
- First quarter: April 1 to April 20
- Second quarter: from July 1 to 20
- Third quarter: from October 1 to 20
- Fourth quarter: from January 1 to January 20 of next year.
How to fill it
As with the rest of the tax models, model 111 has different sections that we must fill in until we enter all the values that are necessary. In the first of them we must enter our data, including the name, surname and NIF.
Next, we move on to Accrual section. In this case, the first thing we have to do is detail the time period of the declaration. Therefore, we have to specify the fiscal year we are referring to and the quarter we are reporting.
Next, we move on to Settlement section. This is the most complex section and in it we must provide a detailed breakdown of the income from work and economic activities. We must specify, therefore, the global amount of the withholdings made, among other fields. In this same section, we must also introduce, if applicable, the prizes subject to withholdings that we have previously mentioned.
The box 30 It will be the one that we must take into account to know the amount that we must pay to the Treasury.
