Allowable deductions and how to apply them

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Withholdings applied to professionals
In the case of professionals, it is common for clients to apply IRPF withholdings on invoices. These withholdings must be reflected in form 130, subtracting them from the total to be paid, since they represent an advance on the tax already paid to the Tax Agency.

How is the tax base calculated in Form 130?
To calculate the tax base in Form 130, all gross income obtained list of saudi arabia cell phone number during the quarter must be added together and deductible expenses related to economic activity must be subtracted.

The resulting difference will be the tax base on which the corresponding percentage will be applied to determine the fractional payment of personal income tax.

Deductible expenses include those necessary for the development of the activity, such as rent, supplies, materials, professional services, among others.

It is crucial to maintain rigorous accounting and have receipts and invoices to justify these expenses. Correctly applying these deductions can significantly reduce the amount of tax payable.

How to submit Form 130?
Filing Form 130 is a process that requires following certain steps and meeting specific requirements to ensure that the declaration is correct and completed within the deadlines established by the Tax Agency.

Detailed steps to complete and submit Form 130:

Access to the form: Form 130 can be downloaded directly from the Tax Agency website or through other authorized electronic filing services. It is crucial to ensure that you have the updated version of the form for the corresponding tax year.
Taxpayer identification: The first step involves completing the personal or business identification fields, including the NIF and other relevant tax information. It is important to verify that all the information provided is accurate and up to date.
Income statement: Form 130 is designed to report income obtained from economic activities carried out by individuals, such as self-employed persons and professionals. Here, the nature of the income received during the fiscal quarter must be detailed, specifying whether it is subject to withholding or not.
Calculation of the tax base: the net income obtained during the quarter must be calculated, after deducting expenses directly related to the economic activity. It is essential to correctly apply the deductions allowed by law, such as amortization expenses, loan interest and other relevant operating costs.
Withholdings applied: if the taxpayer has received income subject to IRPF withholding, these must be adequately detailed in Form 130. Withholdings made by third parties must be correctly reported to avoid discrepancies in tax information.
Electronic filing: The Tax Agency promotes the electronic filing of Form 130 through its online platform. This guarantees fast and secure delivery, reducing the risk of administrative errors and facilitating the taxpayer's tax management.
Platforms and options for electronic filing
To facilitate tax compliance, the Tax Agency offers various electronic platforms for filing Form 130.

These include the Monthly Informative Declaration system for Large Companies (MEGA), as well as services provided by authorized collaborating entities.