1. Are you familiar with the 2023 tax calendar?
The 2023 tax calendar is just around the corner.
That’s why it’s crucial to know the tax payment deadlines.
This will allow us to better plan our cash flow and ensure we can make the payments without any issues.
To properly plan your tax payments and help you avoid any unexpected issues, we recommend establishing a tax strategy tailored to your business.
2. Why should you plan for tax payments?
Turning a blind eye to reality puts you at a clear disadvantage in the business world and can negatively impact your business’s finances.
Without proper cash flow planning, it’s impossible to have the liquidity needed to cover tax payments.
If there’s no other option, you can always defer payment.
The Tax Agency allows you to do so, but the associated costs and interest charges are notably high.
Generally, it’s usually better to seek external business financing.
3. How can you secure immediate liquidity to pay taxes?
As we’ve mentioned, you must act prudently, sensibly, and with full knowledge of the facts. Only by keeping the 2023 tax calendar in mind will you be able to effectively plan your tax payments without unnecessary surprises.
Regarding quarterly VAT payments, remember that when you issue invoices to your customers, you receive a portion of the revenue that does not actually belong to you. Depending on your business activity, this amounts to 4%, 10%, or 21%.
Therefore, it’s in your best interest to set up a VAT fund—that is, to “save” these amounts and treat them as off-limits. If you engage in intra-Community transactions subject to the equivalence surcharge, you’ll also need to factor in the VAT payment.
On the other hand, income tax takes about 20% of what you earn. So, set that amount aside as well. Do the same with withholding taxes on rent (19%) and payroll.
Managing a company’s immediate cash flow requires keeping orderly accounting records.
Likewise, monitoring cash flow and implementing a business financing plan are essential steps for survival.
4. What are the key dates on the 2023 tax calendar?
The main tax dates for self-employed individuals and small and medium-sized businesses that you should be aware of regarding tax payments are:
4.1. January 2023 Tax Calendar
– By the 20th. Forms 111 and 115. That is, quarterly tax returns for employees and self-employed individuals, and rental withholding taxes, respectively.
– By the 31st. Forms 303 (quarterly VAT return), 130 and 131 (installment payments for personal income tax), 390 (annual VAT summary), and 180 (annual summary of rent withholdings). You must also file Form 190 (annual summary of Form 111) and Form 184 (income, expenses, and profits of certain non-commercial entities). Finally, Form 349 is a summary of intra-Community declarations.
4.2. Tax Calendar for February 2023
Form 347, corresponding to the annual tax return for the previous fiscal year, may be fileduntil the 28th.
4.3. Tax Calendar March 2023
Form 720 reports information on assets and rights located outside Spain. The deadline is March 31.
4.4. Tax Calendar April 2023
Tax returns for the first quarter of 2023 must be filed this month. During the first half of the month, you can already file Form 100 (income tax return—draft version online), as well as Form 720 regarding assets and rights held abroad.
Through April 20, several tax obligations must be met, just as in January:
– Forms 111, 115, and 303.
– Forms 130, 131, 202 (installment payment of corporate income tax), 309, and 349.
4.5. Tax Calendar for May 2023
From early May through June 30, filing of the income tax return (Form 100).
4.6. Tax Calendar for June 2023
The deadline for filing income tax returns is the last day of the month. In addition, the deadline for filing the wealth tax return (Form 714) is June 24.
4.7. July 2023 Tax Calendar
The cycle repeats: forms 111, 115, 303, 130, 131, 309, 349, and 369 are due by the 20th. The deadline for corporate income tax (Form 200) is the 25th.
4.8. Tax Calendar October 2023
Third-quarter tax returns are due. Again, these include forms 111, 115, 303, 130, 131, 202, 349, and 369.
4.9. Tax Calendar November 2023
By the 2nd, you must file your tax return for tourist rental properties in Spain (Form 179). Around the 5th, if you paid in installments, the deadline for paying your income tax is due. Also, before the 30th, you must file Forms 232 and 303.
4.10. Tax Calendar for December 2023
The last month of the year includes filing Form 202, which corresponds to income tax for non-residents.
As you can see, there are many deadlines you need to keep in mind if you want to avoid cash flow problems when paying taxes.
Therefore, we recommend that you carefully incorporate the 2023 tax calendar into your business routine.
At WorkCapital, we’d be happy to help you navigate these stressful periods through the discounting of promissory notes or invoice advances.
We encourage you to contact us, with no obligation.
We’ll provide you with all the information you need to ensure your business remains in good financial health.
