What taxes does a self-employed person pay?

A thorough understanding of the tax obligations incumbent on the self-employed is crucial to comply with tax regulations. Ignorance of the taxes due and the deadlines can lead to penalties from the tax authorities, which negatively affects the income earned.

Many self-employed people face this challenge without the support of a specialist tax advisor, which increases the risk of incurring financial penalties. If you are looking to stay on top of your tax responsibilities as a self-employed person in Murcia, read on for more information.

What are the taxes that a self-employed person has to pay?

Regardless of whether you are self-employed as a company or under the general regime, you must comply with your tax obligations. This involves filing quarterly and annual self-assessment forms and making the corresponding tax payments.

The main taxes payable by the self-employed are personal income tax (IRPF) and value added tax (VAT). Each of these taxes is detailed below:

PERSONAL INCOME TAX:

Personal income tax is paid quarterly by means of payments on account or through withholdings made on invoices. The final amount to be paid is determined in the following year's income tax return, which is filed between April and June. The tax liability is calculated according to the personal income tax brackets.

VAT:

VAT is added to invoices and paid quarterly to the tax authorities. The VAT rate varies according to the product or service offered. It is important to pay VAT on time to avoid penalties. In addition, an annual information form (form 390) must be filed.

How much personal income tax do I have to pay as a self-employed person?

The amount of personal income tax to be paid depends on each individual case. Payments on account made quarterly are advances to the tax authorities. The final amount is determined in the Personal Income Tax Return, where refunds can be claimed if applicable.

How much VAT do I have to pay?

The VAT rate to be paid varies according to the product or service offered. It is the self-employed person's responsibility to pay VAT quarterly and to file the annual information form (form 390).

Is the self-employment tax a tax?

Technically, the self-employed contribution is not a tax, but a legal obligation to carry out a business or professional activity. This contribution allows access to Social Security services and benefits. Some communities offer reductions in the self-employed contribution for a certain period of time.

Stay informed about your tax obligations to avoid penalties.

At Axis AdvisorsWe offer you the help you need to meet your tax obligations and focus on growing your business in Murcia.