Tax loss penalty, voluntary disclosure and reduction

Compares the tax loss penalty, late interest, voluntary disclosure surcharge and penalty reduction for under-declared tax.

How it is calculated

Rules: the tax loss penalty is 1× the lost tax, 3× for evasion. Voluntary disclosure avoids the penalty; a monthly 3.7% surcharge applies. Under an invitation to explain, the penalty is reduced to 20%.

Legal basis: Tax Procedure Law arts. 112, 344, 359, 370, 371 and 376.