The fiscal year is a period of time (generally 12 months) in which a company or independent worker balances the accounts of its financial and accounting activities.
The fiscal year is a period of time in which a summary or closure of the activity of the company or of the individual worker is made. The period considered is generally 12 months, but does not necessarily coincide with a calendar year (Gregorian calendar).
What is the fiscal year for
The objective of the fiscal year is to balance the accounts at the end of the year and serve as the basis for the payment of taxes.
At the end of the year, agents present their balance sheets and income statements, which allows them, among other things:
- Evaluate your performance in the year.
- Make adjustments when performance is out of your expectations.
- Plan investments for future growth.
- Calculate the taxes you will have to pay.
Fiscal year in Spain
The fiscal year in Spain coincides with the calendar year. In this way, it begins on January 1 and ends on December 31 of the same year. Notwithstanding the foregoing, this does not mean that the payment of taxes is made at the end of the year, the government considers a sufficient period of time so that taxpayers can review and order their accounts.
In the case of income tax, the filing of the returns is made in April of the year following the close of the fiscal year. It is only there when taxpayers must present their accounts and pay the corresponding taxes. In this way, if the fiscal year we are observing is 2014, the payment of taxes will be made from April 2015 and the term will end at the end of June 2015.
It is worth mentioning that every year, the Tax Agency publishes a fiscal calendar indicating the dates and deadlines in which taxpayers must file their returns and make the payment of their taxes.