Make sure that you are doing your invoices with the correct withholding (Retention) percentage.
Find here a table with the most frequent retention types for self employed and small business.
|Applicable Rates for With-holdings (Rententions)|
|2015||From 2016 to date.
|Before July,12th||After July,12th|
|New Business (1)||9%||7%||7%|
|Businesses in General(2)||20%||15%||15%|
(1) New Businesses can apply a lower retention rate during the first year of business and the following two years. This is not compulsory. If you anticipate a final tax bill, you may prefer to advance some payments in your retentions.
(2) The obligation of including ‘retention? in your invoices only applies if you are to invoice a SL Company.
What to include on an invoice.
Understand IVA, Retentions & Income Tax.