Concentrating on this part of the website, on the retentions there are a number of points that have to be taken into account ragarding these particulars.

1. the concept of retention has been adopted by the Garman Tax System and is based on the concept of Quelle Steuer:- whenevery there is economic activity there must be a tax to control it.

2. nevertheless, this is not a tax as such because this is established as a prepayment of the tax to be paid at the end of the financial year by the company.

3. therefore, if the company is paying wages, invoices etc., the company is entitled to retain part of this payment but will have to pay it to the tax authorities at the end of the corresponding quarter.

4. the system also works the other way round; if a company , for instance, is renting out a house which it owns, the tenant will not have to pay the full rent because they are entitled to retain part of the rent.  They will have to pay this retention at the end of the quarter and the company will be able to net these retentions against Company House in their end of year payment.

5. thereforethe entire system will net itself at the end of the year.  The company will claim back their retentions at the time of presentation of the company tax and the workers of the company willl be entitled to net the retentions made by the company from their wages against the amount of tax payable for that year.

6. this system, copied from the German method, provides not only a way to collect taxes but also enables the Spanish Government to collect more information about the numbers and types of activiities that take place in Spain during an economic year.  

Retenciones of partial payment to the I.R.P.F.

When a company is constituted and has been inscribed and accepted by the Company House, corresponding to the local area of the company, this will be the start of certain tax related legal obligations which have to be presented every three months.
A company must present each quarter:-

- retentions as illustrated in moded 110.

- VAT as presented in model 303.

Very many thanks for the excellent service you provided to me recently in the Notary’s office.
Thanks also for the discretion you showed me in the course of dealing with what is a very personal and delicate situation.
I look forward to calling on your services again in the future.
S.A.M. London - Alcalá la Real (Jaen)