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Rectifying Self-Assessment Guide 2024

Baker Tilly Feb 1, 2024

The new figure of the rectifying self-assessment, as introduced by Law 13/2023, of May 24, emerges as a pivotal mechanism to correct, complete, or modify self-assessments previously filed for taxes such as VAT, Personal Income Tax, and Corporate Income Tax. This innovative procedure supersedes the traditional dual system of complementary self-assessment and rectification request mandated by the General Tax Law.

The enactment of Royal Decree 117/2024 on January 30 modifies the regulations across various taxes to incorporate this feature. The process mandates the filing of a rectifying self-assessment through an Administration-approved model. Nonetheless, should the rectification pertain to the infringement of a superior legal rule, the conventional rectification procedure may still be applied.

Filers can submit the rectifying self-assessment within the four-year statute of limitations, preserving the Administration's right to settle tax debts or the obligor's right to seek refunds. This submission must include both the unchanged elements of the original self-assessment and any amendments introduced by the taxpayer.

The implications of rectification fluctuate based on its outcome. Should it lead to an increased payment or a diminished refund, the complementary self-assessment regime kicks in. In instances where a refund is warranted, it shall be processed in alignment with the LGT, within a standard term of six months. Conversely, if the rectification results in a lower payment without warranting a refund, the payment obligation persists, capped by the rectified amount.

Moreover, for deferred or installment-based debts, lodging a rectifying self-assessment is deemed a modification request for such payment arrangements. It remains impermissible to rectify self-assessments for tax elements already regularized by the Administration via the issuance of the corresponding settlement.

Tax-specific nuances include, for example, the prohibition of self-assessment rectification for VAT scenarios where the rectification impacts quotas improperly passed onto other taxpayers. Similarly, for Corporate Income Tax, particularly for entities under the consolidation regime, rectifications must be collectively filed by the tax group and individually by each affected company.

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