Under the system based on actual earnings, when you register you choose a bracket according to the net income you expect to make in the year. You can switch brackets several times during the year if your forecast changes. Once the tax agency reports your final income to social security, there is a regularisation: if you paid less than you should have, you are asked for the difference; if you paid too much, it is refunded.
The typical mistake is to pick the lowest bracket to save money at the start and then forget about it. If the year goes well, the regularisation arrives all at once, often at the same time as other payments. Another common slip is not having enough money in the account on the debit date: an unpaid contribution brings surcharges and can cost you rebates, because many of them require you to be up to date with social security.
The cuota is linked to the tarifa plana, to rendimiento neto and to domiciliación bancaria. It is also a deductible business expense: it goes into your expense ledger, lowers the net income used for your quarterly income tax prepayment and shows up in your annual return. In kontora the cuota is booked as an expense in double-entry accounting, so the net income figure already reflects it.
Guides that use this term
Related terms
Rather have this calculated for you?
kontora generates your tax forms box by box, tells you how much to set aside and reminds you before every deadline.