Model 111 – What is it, definition and concept | 2022

Form 111 is the declaration before the Administration that companies or freelancers in Spain must make to declare the withholdings made to their workers on account of Income Tax (IRPF) during a quarter.

That is to say, through form 111, those amounts that the person (individual or legal) has withheld on account of personal income tax in the payroll of their workers or invoices to another self-employed person are declared.

For example, when a self-employed person hires an advisor, they make a withholding on account of personal income tax. This amount that has been withheld and not paid to the worker is what must be presented in form 111.

This document is informative and may or may not involve the payment of a pecuniary benefit. It is mandatory for companies and freelancers.

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Why are these amounts withheld and not paid to workers? The tax legislation establishes that these amounts must be paid to the Tax Administration by the company in advance and that the taxpayer will then have to declare.

That is, the company pays the worker a certain amount. Then, that person files the income tax return and that amount that the company advanced from their payroll may be returned to them. Thus, he will not have to contribute anything else to the Public Treasury.

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Characteristics of the 111 model

The main features of this 111 model are:

  • It must be submitted by all companies or self-employed professionals, regardless of the activity to which they are engaged.
  • It has a quarterly periodicity, that is, it must be presented every three months.
  • Large companies and public administrations can submit it every six months.
  • There is an established period of time for the presentation of this model once the quarter or semester ends. Usually it is 20 days.
  • All invoices paying for the service of another professional where there are withholdings and the payroll of the workers must be presented together with model 111.
  • You must also present this model when you withhold income tax on prizes from contests or games by a professional. Likewise, when image rights are generated and when there are invoices for agricultural, livestock or forestry activities.
  • It can be submitted electronically or in person.
  • The result of this liquidation presented through the 111 model can be negative or positive. That is, it may be that you do not have to pay any amount or that you have to pay an economic benefit.

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