Definition of Tax Domicile

The tax agency and the taxpayers who pay their taxes need an avenue of communication to carry out all the necessary procedures related to tax obligations (payment of taxes, request for deferrals, etc.). One of the fundamental data for such communication to be effective and correct is, precisely, the tax domicile, which is the place indicated by the taxpayer to receive the communication from the agency tributary.

It must be borne in mind that the tax address does not necessarily have to coincide with the address where the economic activity, but normally they do coincide (in this sense, the concept of fiscal address and postal address should not be confused). It should also be remembered that the registration data (the place where we usually reside) is not related to the tax address. Another piece of information that creates some confusion is the registered office of an entity, which must be communicated in the record commercial, while the tax address is an aspect that is transferred administratively to the tax agency. These distinctions are relevant, because with some frequency the taxpayer has doubts when completing their annual income tax return.

What is the tax domicile for

In the first place and as we have already indicated, to receive information from the administration. Second, for a correct tax identification of a company with respect to its customers and suppliers (for example, so that the latter can issue an invoice correctly). It is also necessary for a autonomous or company can be registered in the social Security.

The mandatory identification of the tax domicile affects both natural persons and legal persons that carry out an economic activity.

Other questions about tax domicile

The taxpayer should know that the communication of the tax address to the tax agency is not a simple procedure but rather has a mandatory nature that cannot be circumvented. It is logical that this is the case, since the administration and management of taxes is based on a precise control over the identification of taxpayers. On the other hand, it must be remembered that tax collection is essential to maintain the structure of a society and public services (health, education, infrastructures, pensions, etc).

In recent years the tax agency in most countries has introduced online portals, a technological tool that facilitates the communication between the administration and citizens through direct procedures (for example, electronic signature or certification digital).

The complexity technical and bureaucratic in relation to tax administration makes many citizens and companies use a tax advisor to ensure that the procedures carried out are carried out in accordance with to law and according to the established procedure.

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