What is Form 130 and what is it used for?

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Tax and legal benefits: The corporate structure offers tax and legal benefits, including the possibility of optimizing the tax burden and protecting personal assets from business debts.
Optimisation of tax burden: self-employed corporates can benefit from various tax deductions and exemptions, which can result in a significant reduction of the tax burden.
Their liability is limited to the percentage of capital contributed to list of saudi arabia cell phone number the company: one of the greatest advantages is the limitation of liability to the capital contributed.
Disadvantages:

Additional costs and administrative complexity: managing a commercial company involves higher administrative and accounting costs, as well as greater complexity in terms of compliance with legal and tax regulations.
Paying higher Social Security contributions: the minimum contribution base for corporate self-employed workers is higher than for self-employed individuals, which results in higher Social Security contributions.
Upon reaching retirement age, it is not possible to work and receive 100% of the pension: self-employed persons who continue to work after reaching retirement age cannot fully combine receiving their pension with income from their business activity.

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Conclusion
For those considering becoming a corporate freelancer, it is essential to evaluate both the advantages and disadvantages.

The protection of personal assets and tax benefits are attractive, but the increased administrative complexity and additional costs are factors to consider.

Frequently Asked Questions
Can I be a corporate freelancer and an individual freelancer at the same time?
Yes, it is possible to be a corporate freelancer and an individual freelancer simultaneously with 50% of the capital, as long as the tax and legal obligations of both figures are met.

How is Social Security managed in the case of a corporate self-employed person?
The corporate self-employed person must pay Social Security contributions through the Special Regime for Self-Employed Workers (RETA), with a higher minimum contribution base than that of self-employed individuals.

What is the fee for a corporate self-employed person?
The contribution for a corporate self-employed person varies depending on the selected contribution base, but is generally higher than that for a natural person self-employed person due to the higher minimum contribution base.This article explains everything you need to know about Form 130, how to calculate the taxable base and the consequences of not complying with this obligation.

Join us on this journey and ensure your tax compliance in a simple and efficient way.

Form 130 is a quarterly declaration that must be submitted by self-employed workers, professionals and individual entrepreneurs to make fractional payments of personal income tax.

Its main purpose is to advance part of the annual settlement of personal income tax, allowing the Tax Agency to collect taxes in a more regular and equitable manner throughout the year. This helps to avoid large disbursements at the end of the year, distributing tax payments over more manageable periods.

It also facilitates fiscal control by the Administration and helps taxpayers to keep their accounts more organized and clear.

Who must submit Form 130?
Form 130 must be submitted by self-employed workers, professionals and individual entrepreneurs who carry out economic activities in direct estimation, when it is not necessary to withhold personal income tax up to 70% of their income .