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Income tax and form 130: fractional payments

Who must file form 130 and how to calculate the quarterly payment.

By ContaFlow Editorial TeamMay 9, 20264 min read

Form 130 is the quarterly income-tax prepayment for freelancers under direct assessment.

Who files it

You're only exempt if, in the previous year, at least 70% of your activity income already carried IRPF withholding (the rule under RD 439/2007 art. 110.3.b). Below that threshold you must file and pay; above it you may be exempt from the payment — though you may still need to file a nil return.

How it's calculated

  1. Quarter income minus deductible expenses = profit.
  2. Apply 20% to that profit.
  3. Deduct previous payments and withholdings.

The result is what you prepay now; it's all reconciled in the annual return.

This content is educational and does not replace a gestoría, tax advisor or lawyer.

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