The obligation to retention at the source for independent workers depends on several factors, namely the activity sector and the tax regime in which they are framed. According to Deco Proteste, not all professionals who pass green receipts are required to retention at the source.
Who is dismissed from retention at the source?
According to Deco Proteste, there are two scenarios in which independent workers are not required to retention at source:
- Exercise certain activitieshow Hospitality, travel agencies or restoration.
- If they are framed in the simplified regime and have annual income less than 15.000 euros in IRS category.
In these cases, income is received in full, without immediate tax retention. However, at the time of the IRS declaration, the worker may not be entitled to any reimbursement and may even have to pay tax, depending on the final calculation made by the Tax Authority (AT).
What happens if it exceeds the limit of 15,000 euros?
If, at any time of the year, category B income exceeds 15,000 euros, the worker is obliged to retention at the source.
According to Deco Proteste, the retention should start immediately in the invoice following the one in which the limit was exceeded.
Related:
In this case:
- The worker does not receive all the invoiced valuebecause the retention at the source will be done by customers with Organized Accounting.
- The amount withheld will be delivered to the state by customers, acting as a IRS advance.
How is retention calculated at the source?
The retention rate at the source applicable to the income of an independent worker does not consider factors such as marital status, number of dependents or fiscal residence, unlike retention tables applied to workers due to others and pensioners.
Source retention rates vary depending on the activity performed, and may go to 25%, and it is important to consult the Tax Authority or an accountant to confirm the correct fee to apply.
Conclusion
Green receipt retention is not mandatory for all independent workers, but depends on the activity sector and income.
For those who are exempt, it is essential to be aware that in the annual declaration of, it may be necessary to settle tax, as there was no retention throughout the year.
For those who exceed the limit of 15,000 euros annual, retention at the source becomes mandatory, being discounted directly on each invoice issued for customers with organized accounting.
Also read:
