Law 40/1998, of December 9, of the Income Tax of the Physical Persons and other Tax Rules ("Official State Gazette" of 10), and the Regulation of the said Tax, approved in the sole article of the Royal Decree 214/1999 of 5 February ("Official State Gazette" of 9) has carried out a thorough reform of the Income Tax of the Physical Persons and of their system of payments to account, especially as regards the objective field of the obligation to retain or to enter into account and to the procedure for determining the amount of withholding or income on account of certain income, including income from work.

However, the formal and material obligations of the retainer or obliged to enter into account regarding the periodic declaration and income of the amounts withheld or of the income to account corresponding to the period that is the subject of a declaration which has been basically maintained in terms similar to those laid down in the previous legislation.

In this sense, article 101.1 of the Income Tax Regulation of the Physical Persons establishes that the subject obliged to retain and practice income on account must present in the first twenty calendar days of the months of April, July, October and January, declaration of the amounts withheld and of the income to account corresponding to the immediate natural quarter before and to enter its amount in the Public Treasury.

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to be borne by the (a) the date of the first of the preceding years, in the case of retainers or obligors in which the circumstances referred to in Article 71 (1) or of the Value Added Tax Regulation, approved by Royal Decree 1624/1992, of 29 March 1992, are met. December. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September.

The holder of the holding or obliged to enter into account shall submit a negative statement when, despite the fact that he has satisfied income which is subject to withholding or income, he has not, for the purposes of his/her amount, carried out the retention or income to any account. No negative declaration shall be made where the income for which the withholding tax has been withheld and the income on account has not been satisfied in the reporting period.

From this perspective, for the statement of the holds and income to account practiced on the returns of the work, economic activities and prizes have been used the models 110 and 111 of declaration-document The law of the Member States of the European Communities on the subject of national law.

With regard to the form and place of filing of these declarations-income documents, the Order of 20 January 1999 ("Official State Gazette" of 22) laid down the general conditions and the procedure for the Compulsory submission by telematic, inter alia, of the monthly declaration-liquidation of large enterprises, model 111, corresponding to the month of January 1999 and successive. Similarly, the Order of 30 September 1999 ("Official State Gazette" of 1 October 1999) laid down the general conditions for voluntary submission by telematic, inter alia, of quarterly declarations by small and medium-sized enterprises. Medium-sized enterprises, model 110, corresponding to the third quarter of 1999 and successive.

Royal Decree 1968/1999 of 23 December 1999 amending certain articles of the Income Tax Regulation of the Physical Persons, the Non-Resident Income Tax and the Plans and Regulations Pension funds, in the area of allowances, obligation to declare, payments on account and information obligations ("Official State Gazette" of 30) has amended Article 70 (1) of the Income Tax Regulation Physical, including, between income subject to withholding or income on account, yields of forestry activities.

It should therefore be necessary to amend models 110 and 111 of the declaration-document of entry, approved by Order of 31 January 1995 in order to incorporate, within the income of economic activities subject to retention or income from forestry activities. In this respect, the two paragraphs set out in the above models for the declaration of income from economic activities have been unified within a single paragraph in which withholding and revenue must be declared in the accounts. corresponding to income which, in accordance with the current rules of the tax, is to be classified as derivatives of professional, agricultural, livestock and forestry activities, as well as those referred to in Article 70.2.b) of the Regulation of the tax when they derive from an economic activity developed by its recipient.

Also, in order to improve the systematic in the various headings of the "liquidation" section of both models, which, without a doubt, will facilitate their completion, the declaration of income is explicitly stated in an independent section the person or entity referred to in point (c) of Article 76 (1) of the Tax Act shall make account of the consideration in cash or in kind to persons or entities not resident in the cases in which they are (a) the allocation of revenue by the transfer of the image rights referred to in paragraph 1; 9 of that Article.

Now, given the mandatory telematic presentation of the statements-liquidations of detections and income on account of the Income Tax of the Physical Persons corresponding to the tax obligations that the consideration of large companies, adjusted to model 111, does not need to be approved in the form of a form. In this respect, the approval of that model is limited to the fact that the tax data to be transmitted by the abovementioned tax authorities in the 111 model, as well as those relating to the accrual, must comply with the content laid down in the 'settlement' and 'accrual' of the model 110, which is approved in this Order, shall be maintained in respect of all other aspects, the general conditions and the procedure laid down in the Order of 20 January 1999 for the telematic presentation of model 111.

Consequently, by making use of the authorizations contained in Article 101.5 and 6 of the Tax Regulation, to which the statements of retentions and income on account of the Income Tax of the Physical Persons shall be made in the models for each class of income established by the Minister of Economy and Finance, who may determine the data to be included in the declarations, as well as the form and place of presentation and entry of the same, and of the Article 2 of Royal Decree 557/2000 of 27 April 2000 to restructure the Ministerial Departments ("Official State Gazette" of 28), under which the Ministry of Finance is responsible for the exercise of the powers hitherto conferred on the Ministry of Economy and Finance, through the bodies referred to in the Paragraph 1 of that Article, as well as of the other items I have granted, I have:

First. Approval of model 110.

One. -Model 110 " Tax on the Income of Physical Persons is approved. Withholding and income on account. Income from work, certain economic activities, prizes and certain income taxes. Declaration-entry document ".

This model, which is listed as an annex to this Order, consists of the following two copies:

Exemplary for the declarant.

Exemplary for the collaborating entity-AEAT.

Two. The model 110 must be used by the retainers and obliged to enter into account for the purpose of the income to which the same refers, with the exception of those in which the circumstances referred to in the 3.1.o of Article 71 of the Value Added Tax Regulation, adopted by Royal Decree 1624/1992 of 29 December 1992.

Second. Place of presentation and entry of model 110.

One. -If the declaration is quantity to be entered, the filing and entry may be made in the deposit entity that provides the cash service in the Delegation of the State Administration of Tax Administration, or Administrations that are dependent on the same, in whose territorial demarcation the declarant has its registered office, accompanying the declaration-document of the photocopy of the card or document proving the number of tax identification if the identification labels drawn up for that purpose by the Agency are not adhered to. State of Tax Administration. In the event that the declaration-entry document bears the aforementioned identification labels and has not elapsed more than one month from the expiration of the time of the entry, the filing and entry may also be carried out in any a contributing entity (Banks, Savings Banks or Credit Unions) of the province corresponding to the tax domicile of the declarant.

Two.-In the case of negative statements, these must be submitted, directly or by registered mail, in the Delegation or Administration of the State Administration of Tax Administration corresponding to the tax domicile of the declarant, accompanying the photocopy statement of the card or document proving the tax identification number if the same does not bear the corresponding identifying labels.

Three. -Tax obligations that are covered by the current account system in tax matters governed by Royal Decree 1108/1999 of 25 June ("Official State Gazette" of 7 July) will present the corresponding model 110 in accordance with the rules laid down in the sixth paragraph of the Order of 30 September 1999, approving the model of application for inclusion in the current account system in the field of taxation, place of presentation of tax declarations which generate debts or claims to be entered in the current account and the provisions of the Royal Decree 1108/1999 of 25 June, which regulates the current account system in the field of taxation ("Official State Gazette" of 1 October).

Four. -Without prejudice to the provisions of this paragraph, the tax authorities may make the presentation and, where appropriate, the entry of the model 110 by means of telematics in accordance with the provisions of the Order of 30 September 1999 laying down the general conditions and the procedure for the telematic presentation of the statements-liquidations corresponding to the models 110, 130, 300 and 330 (Official State Gazette) 1 October). In the case of a tax obligation included in the tax system, the specialities referred to in the second paragraph of the Order of 22 December shall be taken into account for the telematic presentation of the model 110. The Commission has decided to initiate the procedure for the telematic presentation of the statements-liquidations that generate debts or claims to be entered in the current account in the field of taxation ("Official State Gazette" of 29 January 1999). ).

Third. Period of presentation and entry of the model 110. -In accordance with the provisions of Article 101.1 of the Income Tax Regulation of the Physical Persons, the presentation of the model 110, as well as, if applicable, the income of the amount in the Public Treasury, shall be carried out in the first twenty calendar days of the months of April, July, October and January in relation to the quantities retained and the revenue to be made corresponding to the first, second, third and fourth quarter of the calendar year, respectively.

Term maturities that coincide with a Saturday or an indeft day shall be construed as moved to the following first working day.

Fourth. Approval of model 111.-The model 111 "Tax on the Income of the Physical Persons" is approved. Withholding and income on account. Income from work, certain economic activities, prizes and certain income taxes.

Statement-entry document. Large enterprises " for the telematic presentation of the declarations corresponding to the tax authorities who have the consideration of large companies, for the circumstances referred to in paragraph 3.1.o of the article 71 of the Value Tax Regulation

Added, approved by Royal Decree 1624/1992, of December 29.

Model 111 tax data to be transmitted by telematics, as well as those relating to the financial year and period to be declared, shall be in accordance with those set out in the "settlement" and "accrual" paragraphs of the model 110, approved in this Order.

Fifth. General conditions and procedure for the telematic presentation of the model 111. The presentation by telematics of the model 111 will be carried out in accordance with the provisions of the Order of 20 January 1999, establishing the conditions general and the procedure for the telematic presentation of the monthly statements of large companies corresponding to the 111, 320 and 332 codes.

In the case of declarants included in the system of current account in tax matters, for the presentation of the model 111, the specialties provided for in the Order of 22 December 1999, for which the establishes the procedure for the telematic presentation of the statements-settlements that generate debts or credits to be recorded in the current account in tax matters.

Single additional disposition.

One. -The references contained in the model 110 in the Order of 30 September 1999 laying down the general conditions and the procedure for the telematic presentation of the statements-settlements corresponding to the models 110, 130, 300 and 330 shall be understood as being made to the model 110, approved in this Order.

Two.-The references made to the model 111 in the Order of 20 January 1999 laying down the general conditions and the procedure for the telematic presentation of the monthly statements of Large enterprises corresponding to codes 111, 320 and 332 shall be understood as being made to the model 111 approved in this Order.

Single repeal provision.

As of 31 December 2000, the Order of 31 January 1995 has been repealed, with the approval of models 110 and 111 of the declaration-document of income of the withholding tax and income on account of the income tax of Physical Persons and the monthly envelope of model 111. Consequently, the models approved by the Order will be those to be used, under the conditions laid down in the Order, during the first twenty calendar days of January 2001 to declare and to make the income of the withholding tax. Revenue for the account taken during the last month or quarter of 2000.

Single end disposition.

This Order shall enter into force on 1 January 2001 and shall have effect in respect of the declarations relating to the first quarter and the month of January 2001, and successive declarations.

What I communicate to VV. II. for their knowledge and effects.

Madrid, 6 September 2000.

MONTORO ROMERO

Ilmos. Mr Director-General of the State Tax Administration Agency and Director General of Taxation.

ANNEX

(SEE IMAGES, PAGE 31480 TO 31483).