Officially known in Spanish as: “Modelo 145. Impuesto sobre la Renta de las Personas Físicas Retenciones sobre rendimientos del trabajo. Comunicación de datos al pagador”.

Download the Official Form 145 of Personal Income Tax (IRPF) withholdings on work income and communication of data to the payer, provided by the Tax Agency. 

Form 145 is a form from the Tax Agency related to Personal Income Tax (IRPF). Through this, the taxpayer communicates to the payer (usually their company) their personal and family situation. This will determine the IRPF withholding percentage applied to their payroll.

Form 145 is the Treasury form in which the self-employed worker or SME must collect the necessary information, in order to calculate the Personal Income Tax withholdings to be applied to a worker’s payroll. The latter is the one who is obliged to provide the required personal data.

What is Form 145 for?

It is a document that will be key in your income tax return. Since it will be used to calculate the IRPF withholding that will be applied to your payroll each month. Hence, the precision with which you complete Form 145 will be essential to receive a higher or lower salary.

Your payer, that is, the company you work for, is required to withhold a percentage of your income. In anticipation of the taxes that you will have to pay in your income tax return. In this sense, your family situation (if you have dependents or a large family), or personal (for example, if you are a person with a disability), will influence when determining the withholding percentage.

Who and when should form 145 be filled out?

The most usual thing is that you complete Form 145 when you start working in a company. Likewise, such as when there is a change in the personal and family circumstances that you had previously notified. In fact, the communication of data must be made prior to the first day of each year or the beginning of the contractual relationship with the company. It should reflect your personal and family situation at that time.

However, as many employees forget to inform the company about these changes, do not know what they should do, or do not know how to do it, many companies usually ask their workers to complete it at the end of the year, to collect the variations that may have occurred and that may give rise to a change in the IRPF withholding of your payroll.

If there are no changes in the family or personal situation, it will not be necessary to make this communication to the payer each year.

Presentation in cases of data variation

If your personal and family situation changes once Form 145 has been submitted, and these involve a lower rate of withholding, for example, the birth of a child, you can submit this form again. The modifications will take effect from the date of communication, provided that there are at least five days left for the preparation of the next payroll.

If there is a change in your personal or family situation that implies the application of a higher withholding rate, you must notify it within 10 days. The new Personal Income Tax withholding percentage will be applied to the next payroll, provided that there are at least five days remaining for its preparation.

What happens if Form 145 is not submitted?

If you prefer not to communicate to your payer any of the information requested in Form 145, the Personal Income Tax withholding that your company applies may be higher than what corresponds to you. In this case, when presenting the income tax return for that year, if you have withheld more money than would be yours due to your circumstances, you can recover the amount of this difference.

Also, keep in mind that if you include false, incomplete, or inaccurate information in Form 145, or do not communicate changes in your personal or family situation that, if known by the payer, would have determined a higher withholding, you are committing a tax offense which can be penalized with a fine of 35% to 150% of the amounts that you would have stopped withholding for this reason.

Remember that if there is any incorrect data in Form 145, it will be you who has to accept the consequences and not the company, whose only duty is to correctly calculate the withholding percentage based on the information you have submitted.

How is Form 145 filled out?

Form 145 is relatively easy to fill out and consists of seven sections that will serve to clarify your personal and family situation to the company.

Section 1: identification and family situation

This section begins with your personal data, that is, basic information such as name, surname, ID, and date of birth.

  1. Family situation: it identifies up to three possibilities. You only have to check one option and it has to be the one that best describes your situation.
  2. Disability: you must check the corresponding box if you have a degree of disability greater than 33% and less than 65%, equal to or greater than 65%, if you need help from third parties or have reduced mobility.
  3. Geographical mobility: you will check this box in the event that, while previously unemployed, you have found work and have had to move your habitual residence.
  4. Obtaining income with a generation period of more than two years during the five previous tax periods: you must check this box if, for example, you were fired in 2017 and you agreed that the compensation would be paid to you during that year and the following year.

Section 2: children and other descendants

You must fill in this section with the corresponding data if you have children or other descendants (for example, grandchildren), who are under 25 years or are disabled people of any age, who live with you and do not earn more than 8,000 euros per year.

If the descendants live only with you and there is no shared custody, i.e. in the case of single-parent families, you must check the box “Computation for the whole number of children or descendants”.

Section 3: ascendants

This section is dedicated to ascendants like parents and grandparents, over 65 years of age, who are in your care and who do not have an annual income of more than 8,000 euros. Ascendants with a disability who live with you must also be entered here, even if they are under 65 years of age.

Section 4: alimony and maintenance payments

In the event that you have to pay alimony to your children or a compensatory one to your spouse, you must indicate it in this section, provided that these are established by judicial decision.

Section 5: deductions for external financing for the habitual residence

This section of form 145 must be marked if you make any type of payment for the purchase or restoration of your primary residence, using outside financing, i.e., through a mortgage. However, you should only fill it in if you bought the property before 2013 and if you do not earn more than €33,007.2.

Sections 6 and 7: signature, date and acknowledgment of receipt

These last two sections refer simply to the inclusion of the signature by the company and the worker. In this case, an acknowledgment of the receipt is added, because the obligation to withhold corresponds to the company and it is important to reflect that you have delivered Form 145 so that they do it according to the data contained therein.

Where should Form 145 be presented?

Form 145 is NOT submitted to the Tax Agency, but delivered filled out and signed to your hiring company or entity. It will be the company that keeps a copy of it to make it available to the Treasury if requested.

You can do it yourself or rely on our service because it is always a good idea to leave tax issues in the hands of specialists.