Personal Income Tax Installments (Model 130): Who Qualifies and What You Get

This scheme allows certain self-employed individuals to pay their income tax through a series of scheduled payments throughout the year.

👤Who it's for

This system is specifically for self-employed individuals who are not subject to withholding. If your income is not subject to withholding, you must use this method to manage your tax obligations.

🎁What you get

This scheme provides a structured way to manage your tax liability through quarterly installments. Instead of paying a single large sum at the end of the year, you make payments every three months. The amount you are required to pay is calculated as 20% of your net profit for that period.

💰What it costs you

There is no administrative fee to access this installment model. However, the cost to you is the actual payment of the 20% of your net profit that is due each quarter. You must also dedicate time to calculating your net profit and preparing the necessary documentation for each quarterly filing.

⚠️The catch to know

The most important thing to remember is that you must file your paperwork regardless of your business performance. Even if your business makes no profit during a specific quarter, you are still required to submit the filing. If you fail to file these quarterly documents, you may face heavy fines from the tax authorities.

📝How to apply

1. Calculate your total net profit for the current three-month period.
2. Calculate the 20% installment amount based on that net profit.
3. Prepare your quarterly declaration using the required model.
4. Submit your filing and payment through the official tax agency portal.