TAX ALERT: SPANISH SURCHARGES LATE SUBMISSION

Hector Fernandez
July 13, 2021

The system of penalties/surcharges for late submission without prior requirement by the Tax Authorities (Art. 27.2 LGT 58/2003) has been modified by the Act 11/2021 published on Saturday 10 July 2021 in the Spanish Gazette (BOE) and came into force on Sunday 11 July 2021.

The new rule brings changes to the penalties/surcharges system. The new surcharge is 1% for delays of less than a month, plus an additional 1% for each full month of delay that follows. The rate increases again after a 12 month period to 15% plus an additional late payment interest charge.

The differences between the new and previous penalties/surcharges system are shown below in the explanatory table:

LATE SUBMISSION NEW SYSTEM PREVIOUS SYSTEM DIFFERENCE
<1 Month 1% 5% 4%

Between 1 and 2 months

2%

5% 3%
Between 2 and 3 months

3%

5% 2%
Between 3 and 4 months

4%

10% 6%
Between 4 and 5 months

5%

10% 5%
Between 5 and 6 months

6%

10% 4%
Between 6 and 7 months

7%

15% 8%
Between 7 and 8 months

8%

15% 7%
Between 8 and 9 months

9%

15% 6%
Between 9 and 10 months

10%

15% 5%
Between 10 and 11 months

11%

15% 4%
Between 11 and 12 months

12%

15% 3%
More than 12 months

15% + Interest 20% +Interest

5%

The new system of surcharges will be applied retrospectively to declarations submitted prior to Sunday 11 July 2021.

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Author

Hector Fernandez

Hector Fernandez, Principal Compliance Services Representative – Spain, joined the country team at Sovos in 2019 and manages the IPT process for our Spanish customers. He has five years’ experience working in Spain (Broseta Abogados) and Dublin (HERTZ) in tax departments dealing with direct and indirect taxes and has completed a Degree in Law and a Master in International and Community taxes and is studying for his new Master Degree in Insurance Law (The National Distance Education University (UNED).
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