Instruction manual for drafting your income tax return
What is a draft statement?
A draft income statement is the estimate made by the Tax Agency based on the personal and fiscal data of the taxpayer, including family and economic data.
Where can I access it?
On the Tax Agency website or via the free mobile app.
Don’t rush – take your time before sending the draft
Once you have the draft, make sure to check all the information carefully. Keep the following recommendations in mind as you read it to avoid making mistakes that could give you real headaches:
Real estate or housing rental: This year, the Tax Agency is really keeping an eye on this one. If you are the owner of a tourist rental apartment, you must add it to the draft and have all the corresponding documentation to comply with the relevant legal requirements. If you have acquired a property in recent months, you must also report it.
Likewise, make sure to check that the information regarding real estate, gains or losses is correct. Remember that the attribution of real estate income can be a source of conflict. Even relatively small amounts may need to be declared.
Mobility: If your work involves short-term travel, transfers to other countries or business expenses and allowances, find out how you should include these points in the draft, since any tax exemptions on income can lead to problems, depending on the amount or the applicability.
Donations: If you contribute to religious agencies, NGOs involved in social causes, or for example, if you donate to private schools, don’t forget to include it in the draft. This is one of the points under the Treasury’s microscope, since not all donations are tax-deductible.
Compensation: Some compensation for dismissal can lead to significant tax savings.
Disability: Exemptions are determined by the level of disability. Make sure your declaration in this section is correct.
Don’t leave out any documentation: This year, the income statement has several new features, including cryptocurrency transactions. Don’t forget to include these in the draft, as well as any overseas pensions or public grants you received for your work.
Can the draft tax return be modified?
Yes. You can modify your draft in the ‘More Procedures’ section of the Tax Agency website. You will need to identify yourself with either your digital signature, password or the file reference number.
At Duguech&Dip, we recommend that you consult a professional expert if this is your first time submitting your income tax return, if you are an expatriate worker and are unsure about the details of your taxation, or if you simply don’t have time to do it correctly. Remember that it is better to take the time to thoroughly check all your tax information in order to avoid fines and delays.
Legal Notice: Since legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing on this article should be used as a substitute for the advice of competent legal counsel. The content on this article is offered only as information and does not constitute solicitation or provision of legal advice. You should always consult a suitably qualified lawyer regarding any specific legal problem or matter.
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