Form 131, also known as the Quarterly Objective Estimate Declaration, is an essential tax form for the self-employed in Spain. In this blog, we will explore in detail what Form 131 is, its purpose, how it is completed and why it is crucial for those who are self-employed.
1. What is Model 131?
Form 131 is a tax return that must be submitted by self-employed workers who pay taxes under the objective estimation regime, also known as modules. This simplified regime applies to those whose turnover does not exceed certain limits and facilitates taxation by applying pre-established modules instead of recording detailed expenses and income. All self-employed persons (whether they carry out professional activities or not), partners of civil companies and communities of property that qualify for this type of modality are required to present this model.
2. What is Model 131 for?
Estimated Profits and Income: Allows freelancers to estimate their profits and income on a quarterly basis. This calculation is based on parameters such as turnover and other criteria established by tax regulations.
Calculation of Payments on Account: The Model determines the advance payments that the self-employed person must make quarterly. These payments are calculated using the established modules and are intended to cover the Personal Income Tax (IRPF) corresponding to the period.
Tax Simplification: For self-employed workers in modules, the Model considerably simplifies the tax process by avoiding the need to maintain detailed accounting that would be required in other tax regimes.
Quarterly Payment Adjustment: Allows adjustments to be made in payments on account to adjust said payments to the economic reality of each self-employed person. If there are fluctuations in income or expenses, this adjustment helps avoid overpayments or underpayments throughout the year.
3. How is Form 131 completed?
The process of completing the Model involves the following basic steps:
Declarant Identification: Provide your identification data, including name, NIF (Tax Identification Number) and other required details.
Accrual: In this part you must indicate the Fiscal Year to which it corresponds in figures and the Period, which could be 1t, 2t, 3t or 4t.
Settlement: This part is divided into four parts:
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Economic activities in objective estimation other than agricultural, livestock and forestry activities.
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Economic activities in objective estimation other than agricultural, livestock and forestry activities but that do not have the possibility of determining any of the pre-established in the fractional payment database.
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Economic activities in objective estimation dedicated to agriculture or livestock and forestry.
Calculation of Modules and Benefits: Complete the appropriate sections to calculate the modules and estimate profits and revenue for the quarter.
Determination of Payments on Account: Calculates payments on account using the established modules and applies the corresponding deductions, if any.
Entry: If the amount in box 15 is positive, you must fill out this section to be able to make a Deposit in favor of the Public Treasury and specify the payment method and account information.
Electronic or Paper Presentation: This model must be presented electronically through the electronic headquarters of the Tax Agency, using an electronic signature or Cl@ve PIN. In the event of its presentation on pre-printed paper, it will only be valid, for the purposes of its presentation, to regularize installment payments corresponding, if applicable, to years prior to 2015.
4. Importance of Model 131 for the self-employed
Tax Compliance: Presenting the Model in a timely manner ensures compliance with quarterly tax obligations, avoiding possible sanctions for delays or non-compliance.
Efficient Management of Payments on Account: Allows self-employed workers to adjust their payments on account according to the economic reality of their activity, avoiding excessive payments and optimizing financial management. In this way, you also avoid the accumulation of debts of this type that could negatively affect your business, allowing you to make payments on a quarterly basis.
Simplicity in Taxation: For those in the objective estimation regime, the Model simplifies taxation by using pre-established modules instead of detailed accounting.
Adaptation to Economic Changes: The quarterly presentation of the Model facilitates adjustments in payments on account, which allows for rapid adaptation to changes in economic activity.
5. Deadlines for submitting Form 131
The Model must be submitted within the deadlines between the 1st and 20th, both inclusive, of the months of April, July and October, in relation to the installment payments corresponding, respectively, to the first, second and third quarters of each calendar year. .
The deadline for the presentation of the fourth quarter is between the 1st and 30th of January of the immediately following calendar year.
Deadlines that coincide with a Saturday or non-business day will be considered transferred to the first following business day.
This model is a fundamental tool for self-employed people who pay taxes under the objective estimation regime. It not only simplifies taxation, but also ensures that payments on account are adjusted and adapted to the economic reality of the self-employed. Completing this form is key to avoid penalties and guarantee compliance with tax obligations.
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