Form 145 is a form that workers must submit to their company to communicate their personal and family situation, which is used to calculate the Personal Income Tax (IRPF) withholding rate. Correct completion is crucial to ensure that the worker does not pay more taxes than necessary during the tax year.
Who needs to file Form 145?
- All workers, when starting a new job
-
Workers with changes in their personal or family situation
- Marriage, separation, birth/adoption of children, changes in dependents
- Changes in cohabitation (for example, a child becomes independent)
- Workers with multiple income sources, to report all income
When must Form 145 be filed?
- At the start of employment, during onboarding
- After personal or family changes, immediately
- Annually or as requested. (Some companies ask for yearly updates.)
Key information on Form 145
- Personal data (full name, NIF (Tax ID), address)
- Marital status (single, married, widowed, etc.)
- Dependents (number of children or dependents)
- Disabilities (any applicable to the worker or dependents)
- Other income (details of other jobs or income)
- Prior withholdings (if applicable, withholdings applied to previous jobs)
How to file Form 145
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Physical form
- Download the form from the Tax Agency's website
- Fill it out
- Deliver it to your human resources or administration department
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Electronic format
- Digital certificates can be submitted electronically through the Tax Agency's Electronic Office
What happens if Form 145 is not filed?
- The company will apply the standard withholding rate, which is higher (usually 15% or more), which can lead to overpayment of taxes throughout the year.
- This could result in lower monthly liquidity and, at the end of the year, a potential tax refund, but without the benefit of having a higher income during the year.
Personal circumstances that impact withholdings
- Dependents (more dependents means a lower withholding rate, which means they will pay less on their paycheck)
- Marital status (married workers with dual income may have reduced rates)
- Disability (can further lower the withholding rate)
Where can I get Form 145?
- Download it from the Tax Agency website under "Forms and forms"
Can Form 145 be updated or corrected?
- Yes, submit a new form any time after there are changes in your personal or family situation
- For errors: correct any mistakes to personal data or family situations promptly to avoid tax surprises
What to do if you change jobs
- File a new Form 145 with your new employer to ensure correct withholding
- Inform your previous employer, especially if a reduced rate was applied
Detailed Breakdown of Form 145
Part 1: Recipient Data
Enter your personal details, such as your full name, NIF (Tax Identification Number), date of birth, and tax address. This data is essential to identify the worker.
Part 2: Family Situation
In this section, you select the option that best suits your personal and family situation, as this will directly affect the amount your employer withholds from your salary:
- Option 1: If you do not have children and your spouse has an income of more than €1,500 per year.
- Option 2: If you do not have children but your spouse has no income or it is less than €1,500 per year.
- Option 3: If you have children or an ascendant in your care.
Part 3: Children and Other Descendants
Add information about the children or descendants who are in your care, such as their identification number and date of birth. If your child has a disability, you should also indicate this.
Part 4: Dependent Ascendants
If you have ascendants (parents, grandparents) in your care and live with you or depend on you financially, you will write it down in this section. You should also indicate if any of them have a disability.
Part 5: Special Situations
In this section you can indicate if you meet any special situation, such as being disabled, a victim of gender violence or terrorism, among others. These circumstances can also influence the withholding of personal income tax.
Part 6: Signature and Date
Finally, after you have filled out the entire form, you must sign and date. The company, which will be the payer, will also sign to validate the document.
Further information on how to fill out the form 145