Individual - Tax administration

Last reviewed - 25 June 2024

Taxable period

The tax year runs from 1 January to 31 December.

Tax returns

Individuals only deriving employment income are not required to file tax returns, as the Personal Income Tax is withheld at source by their employer.

Personal Income Tax is assessed and paid on a pay as you earn (PAYE) basis through monthly WHT collected by employers.

Self-employed workers file an annual return disclosing their annual income during March of the following year.

By the end of February each year, employers should file the Personal Income Tax annual return ('Modelo 2'). This return should disclose the number of employees and self-employed individuals to which the entity made payments, the total amount of wages and other income paid to each individual, and the total amount of Personal Income Tax withheld, all information referring to the previous year.

Payment of tax

Personal Income Tax is paid on a PAYE basis through monthly WHT collected by employers.