Income tax and form 130: fractional payments
Who must file form 130 and how to calculate the quarterly payment.
By Equipa ContaFlowMay 9, 20264 min read
Form 130 is the quarterly income-tax prepayment for freelancers under direct assessment.
Who files it
It applies if most of your invoices don't carry withholding. If they do, you may be exempt.
How it's calculated
- Quarter income minus deductible expenses = profit.
- Apply 20% to that profit.
- 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.