Financial institutions' obligation to report on accounts and balances

The Tax Administration has specific mechanisms to ascertain the wealth status of taxpayers through information provided by credit institutions. A recent binding ruling has clarified the regulatory framework and the deadlines governing this data communication.

What the DGT has ruled

The Directorate General of Taxes (DGT) has ratified that the obligation to report on accounts held in credit institutions and their respective balances is carried out through Form 196. This procedure is annual and must be complied with following the parameters established in current regulations.

The deadline for submitting this informative declaration is between January 1 and January 31 of the year immediately following the reported fiscal year. Likewise, the resolution emphasizes that the annual submission does not exempt institutions from their duty to attend to any individualized information request that the Tax Administration may issue specifically.

What it means for you

For taxpayers, this criterion confirms the transparency of banking information before the Tax Agency. Information regarding their accounts and existing balances is communicated systematically every year. This implies that the Administration has an updated database regarding the availability of funds in their users' accounts.

What you should do

Since balance information is transmitted automatically, it is fundamental that the data reflected in income tax returns matches the reality of the accounts reported by the institutions. It is necessary to verify that the reported financial information is accurate to avoid discrepancies with the Administration. In the event of any specific information request from the tax authority, institutions will act in accordance with the law, making the traceability of movements a key element.