Withholdings at Source – Payment Guides

Mandatory bank account / Cash payment limit
17 February, 2022
Payments and Foreign Receipts
17 February, 2022

The method of operation of the Income Tax obliges companies to comply with certain obligations.

For most of the income mentioned below, the payment method is the withholding tax, according to which the entity pays the beneficiary the net income of the tax, this tax being mandatorily delivered to the State by the 20th of the following month.

Income Subject to Withholding

In general, income subject to withholding tax is:

• Category A – Income from dependent work

• Category B – Business and professional income

• Category E – Income from capital

• Category F – Building income

• Category H – Pensions

Responsibility for payment of tax

The entity that carries out the withholding tax is obliged to deliver the tax to the State by the 20th of the following month.

This rule is known to all.

Whenever payments are made for Electronic Receipts, Notaries, Royalties, Commissions, etc. this information must be sent to us immediately, so that Granconta proceeds to issue the respective withholding payment guide.

Withholdings on Income (because they are constant, but do not exempt the communication of updates) or Dependent Work (because we process salaries) do not raise problems.

But all other payments, which by their nature are irregular, are completely out of our control.

It should be noted that when a month’s documentation is made available to us for processing, the deadline for submission of the Withholding Payment Guide has already passed (or almost). As a result, withholdings at source are not included in the Payment Guide and the company creates a tax contingency that gives rise to fines and fines.

Granconta is not responsible for any of these contingencies.

It is true that this information has already been discussed in good time, but we see that these situations continue to occur.

The information contained herein does not exempt you from reading our circular 201503, on payments and receipts abroad and we remind you that the deadlines for compliance with these (and other) obligations are included in the monthly fund requests.

As always, Granconta is at your entire disposal to provide any clarifications.

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