Corrective self-assessment: Discover the new tool to correct tax errors in personal income tax, VAT and corporate tax
Posted: Tue Dec 17, 2024 10:12 am
The Tax Agency will enable corrective self-assessment so that self-employed workers can correct tax errors quickly and easily.
The corrective self-assessment can be used to modify deductible income and/or expenses in self-employed tax returns.
The new tool will simplify and unify the processes for filing supplementary declarations and requesting rectification.
If you are self-employed, this will be of interest to you because there are new developments coming. The Ministry of Finance and Civil Service has introduced the so-called corrective self-assessment.
On December 31, 2024, the Official State Gazette (BOE) published Royal Decree 117/2024, of January 30. This legal text modifies the General Regulation of the actions and procedures colombia email list of tax management and inspection. In addition, the regulations are developed in the application procedures in taxes.
All this text, which at first glance seems complex, has been reflected in the corrective self-assessment. This is a tool that will be available at the Tax Agency and will simplify and speed up the process for correcting errors in the tax returns of self-employed workers . Its use will also be permitted for tax managers.
This tool is designed to rectify, modify or complete a tax return already submitted. Self-employed workers will have a simpler process available to them in cases where they have forgotten to include income from a client or have not declared all deductible expenses .
elf-employed persons or tax managers will be able to use this tool without needing an administrative resolution . This process will also be allowed before the tax authorities' right to define the debt or the right to request a refund has expired . Otherwise, this rectification will be considered inadmissible.
This tool cannot be used in situations regularized with final tax settlements.
Whenever it is submitted, the self-employed person must clearly indicate and specify the reason for the change and the time period to which the corrective self-assessment refers.
With the corrective self-assessment, it is still not clear what will happen with these percentages and surcharges. The conditions to be applied in these cases will be indicated in the ministerial orders.
When can it be submitted?
This tool of the Tax Administration will be used in two situations:
The self-employed person must pay to the Treasury a greater amount than initially declared.
The tax authorities must refund a lower amount . In this situation, the self-employed person's obligation to pay is maintained up to the limit of the new amount to be paid. If the amount of the previous self-assessment was deferred or paid in instalments, it should be noted that it will be understood that a modification of the conditions of the deferral or payment in instalments is requested with the presentation of the corrective self-assessment.
Advantages of this new system
Once this tool comes into effect, self-employed workers and tax managers will notice a series of advantages:
Simplification : the process will be much simpler because:
No additional declaration will be required . This process was the usual one in those situations in which you had forgotten to include some income or had not declared it correctly.
There will also be no need to make a request for rectification. And this is a key innovation. In fact, this is where you will notice the advantages of this process the most because, previously, you had to open an administrative file, as an appeal. It was a system that considerably delayed the entire procedure, even taking several months.
With the corrective self-assessment, you will only need to use this tool to make the necessary changes when the two processes are combined. This combination of procedures will occur in most cases, but there may be some exceptions that have not yet been specified.
Speed : the process will also be much faster, regardless of whether, as a self-employed person, you have to pay or you get a refund with the modification made. The time saving will be more noticeable in those rectification request processes, since the written document will no longer have to be submitted. In addition, if the rectifying self-assessment results in a refund, the Tax Agency will understand that the refund of said amount has already been requested without having to do anything else.
The corrective self-assessment can be used to modify deductible income and/or expenses in self-employed tax returns.
The new tool will simplify and unify the processes for filing supplementary declarations and requesting rectification.
If you are self-employed, this will be of interest to you because there are new developments coming. The Ministry of Finance and Civil Service has introduced the so-called corrective self-assessment.
On December 31, 2024, the Official State Gazette (BOE) published Royal Decree 117/2024, of January 30. This legal text modifies the General Regulation of the actions and procedures colombia email list of tax management and inspection. In addition, the regulations are developed in the application procedures in taxes.
All this text, which at first glance seems complex, has been reflected in the corrective self-assessment. This is a tool that will be available at the Tax Agency and will simplify and speed up the process for correcting errors in the tax returns of self-employed workers . Its use will also be permitted for tax managers.
This tool is designed to rectify, modify or complete a tax return already submitted. Self-employed workers will have a simpler process available to them in cases where they have forgotten to include income from a client or have not declared all deductible expenses .
elf-employed persons or tax managers will be able to use this tool without needing an administrative resolution . This process will also be allowed before the tax authorities' right to define the debt or the right to request a refund has expired . Otherwise, this rectification will be considered inadmissible.
This tool cannot be used in situations regularized with final tax settlements.
Whenever it is submitted, the self-employed person must clearly indicate and specify the reason for the change and the time period to which the corrective self-assessment refers.
With the corrective self-assessment, it is still not clear what will happen with these percentages and surcharges. The conditions to be applied in these cases will be indicated in the ministerial orders.
When can it be submitted?
This tool of the Tax Administration will be used in two situations:
The self-employed person must pay to the Treasury a greater amount than initially declared.
The tax authorities must refund a lower amount . In this situation, the self-employed person's obligation to pay is maintained up to the limit of the new amount to be paid. If the amount of the previous self-assessment was deferred or paid in instalments, it should be noted that it will be understood that a modification of the conditions of the deferral or payment in instalments is requested with the presentation of the corrective self-assessment.
Advantages of this new system
Once this tool comes into effect, self-employed workers and tax managers will notice a series of advantages:
Simplification : the process will be much simpler because:
No additional declaration will be required . This process was the usual one in those situations in which you had forgotten to include some income or had not declared it correctly.
There will also be no need to make a request for rectification. And this is a key innovation. In fact, this is where you will notice the advantages of this process the most because, previously, you had to open an administrative file, as an appeal. It was a system that considerably delayed the entire procedure, even taking several months.
With the corrective self-assessment, you will only need to use this tool to make the necessary changes when the two processes are combined. This combination of procedures will occur in most cases, but there may be some exceptions that have not yet been specified.
Speed : the process will also be much faster, regardless of whether, as a self-employed person, you have to pay or you get a refund with the modification made. The time saving will be more noticeable in those rectification request processes, since the written document will no longer have to be submitted. In addition, if the rectifying self-assessment results in a refund, the Tax Agency will understand that the refund of said amount has already been requested without having to do anything else.