Do independent workers need to withhold taxes at the source or are there exceptions? We clarify everything in this article.
“Certain activities do not require withholding at the source, such as hospitality, travel agencies, dining establishments, etc. If the self-employed worker is under the simplified tax regime and does not have category B income exceeding 15,000 euros annually, they are also exempt,” explains DECO PROTeste.
This means “you won’t lose a portion of the income each time an invoice is issued.”
“However, at the time of submitting the IRS statement, there will be nothing to receive as a refund, or you may even have to pay, depending on the calculations made by the tax authority,” adds the consumer protection organization.
What if the limit is exceeded?
“If, at any point during the year, you exceed the stipulated limit, you will have to start withholding taxes at the source on the immediate subsequent invoice. In this case, you will not receive the corresponding amount as it is withheld at the source, meaning from clients with organized accounting, for each invoice. It is then the clients’ responsibility to remit the withheld tax to the State,” according to DECO PROTeste’s website.
Furthermore: “The rate applied to the income does not take into account family situation, dependents, or residence criteria, unlike the withholding tables directed at salaried workers and pensioners.”
