By: Carmen Miranda
What is the Annual Form f-910 retention report?
It is the report that every company or individual that has retained income taxes for the payment of services or employees must submit to the Ministry of Finance, as stipulated in Art. 123 of the Tax Code.
“Natural or legal persons, estates or trusts that make Income Tax retentions, have the obligation to submit, within the month of January, a report by manual, magnetic or electronic means of the natural or legal persons or entities, to which they performed such retentions in the immediately previous year, under the technical specifications provided by the Tax Administration for such purpose.”
The importance of updating this report
For the year 2023, The Ministry of Finance, through the General Directorate of Internal Taxes informed that from January 17 to 31 of the current year, the SUGGESTED ANNUAL REPORT OF INCOME WITHHOLDINGS (F910) corresponding to the fiscal year 2022 was made available on the web page www.mh.gob.sv.
The above has been generated because in MARCH 2021 the attachment to the F14 was added along with the Payment on account and Retentions. return, therefore, it is important to consider the following factors:
- The report will be generated according to the information reported in the monthly declaration of payment on account and retentions from January to December 2022.
- In case of detecting any inconsistency in the data reported in the monthly declarations of payment on account and retentions, we must modify and pay previously, so that the 910 Annual Form is generated with the correct data.
- We have the obligation to deliver the Withholding Certificates to each taxpayer (employees, salaried employees, professional services, etc.).
Modification of f910 report
If reviewing the suggested report data is detected any inconsistency, the system allows to eliminate or add information, then it´s possible to add the correct information about retentions made.
If for any reason there are retentions not reported, the F14 payment on account of the month where we have the difference must be corrected, generating the respective order, making the payment, and then submitting the F910 report where the right information is reflected with the modifications made.
This report had been considered one of the most complex reports for accountants, but with the pertinent changes, it was possible to comply with the presentation of this obligation without complications.