The payments on account of a company are those payments to which the company has to submit to previously pay a tribute, product or service that will be settled later. At the same time, for the guarantee to be fulfilled, the concept of payments on account is regulated by the law of the IRPF in articles 99-101. In addition, payments on account are usually always an advance on future debts.
Types of payments on account
On the other hand, there are three types of most frequent payments on account:
- Split payments. They are carried out by the taxpayer himself when approximately 70% of his income has been subjected to some type of withholding.
- Withholdings. It is directly the withholding for payments of impuestos and debts.
- The income in the account. The payment in kind must be entered into the public treasury because the money cannot be withheld.