Use the following tool to estimate your quarter results and tax liability. Input your total expenses in various concepts and compute your results.
1. Input the addition of the total invoices ( IVA included, when applicable). The application will break down the amount into taxable amount (base) and IVA.
2. The items of Wages and Social Security do not include IVA and will be treated separately.
3. In the Table below you will see the breakdowns and balance of two concepts: amounts before IVA and IVA accounts..
4. Amounts shown in the bottom line are the liabilities of Income Tax and IVA respectively.
5. This is a guideline. It does not take into account possible allowances or negative balance to compensate.
See below the resulting tax liability
|totals||Taxable Amounts||IVA Account|
|Expenses with IVA|
|Expenses with no IVA||0.00|
The tax liability shown as “Income Tax” is the 20% of the Balance. This is the amount of tax that has to be paid at the end of the quarter. However it does not represent the total tax to pay in the year.