How long do I have to close Fiscal year 2019? Important dates!
When it comes to administrative work, there is something that characterises the month of January, and that is that it’s a very turbulent one. Together with the presentation of the quarterly self-assessments, we also need to face the corresponding annual summaries and the closing of the previous fiscal year.
Such accumulation of work forces us to give priority to the tasks that have a specific deadline to avoid possible penalties for our clients such as the presentation of the different tax returns, and leave for later other necessary obligations that don´t have an exact deadline, such as the accounting closing itself. But how long can we delay the closing of the fiscal year?
The key dates that we must consider are:
Together with the presentation of the different withholding tax forms (111, 115 and 123) we will also have to take on account items corresponding to staff compensation, professional services received, leases paid and interest and dividends accrued, which must also coincide with the figures declared in the respective annual summaries (190, 180 and 193) before January 31.
The most common tax returns that need to be presented by 30th January are forms 303 (IVA), form 390 (IVA Summary for the year 2019) and form 349 for the Intracommunity transactions. Also form 130 which is the income tax on account for sole traders needs to be presented at this point.
A second reconciliation of these items comes with the presentation of the declaration of transactions with third parties (form 347) before the end of February, where other items (such as subsidies or compensation received) for more than 3,005.06 euros must also coincide
In accordance with article 253 of the Spanish Real Decreto Legislativo 1/2010, of July 2, which approves the consolidated text of the Spanish Corporation Law, the administrators of the company are required to prepare the annual accounts within a maximum period of three months from the close of the fiscal year, the management report and the proposal for the application of the result, as well as, if appropriate, the consolidated accounts and consolidated management report. Obviously, to be able to prepare the annual accounts it is necessary to have definitively closed the year.
Law 14/2013, of September 27, supporting entrepreneurs and their internationalisation, in article 18, establishes the obligation to telematically legalise the books that entrepreneurs must maintain before four months have elapsed from the date of the closing of the year. The legalisation of the inventory book implies knowing the variation of stocks, the register-records of shareholders (or nominative shares) having written down the transactions that alter their participation in the capital and especially the Minutes register, which entails having registered all the agreements reached by administrators and partners correctly.
The presentation of the Corporation Tax (form 200) implies the final close of the previous fiscal year. This, together with the deposit of the annual accounts (up to one month after its approval), means that we can no longer delay the closing of the accounts, including those aspects not contemplated in the previous sections. Provisions, regularisation and adjustments that we have not accounted for, will from then on have dire consequences, in the form of higher tax payments, or in the worst-case scenario, inspections and various penalties.