Form 111: the tax you withhold

Form 111: the tax you withhold when you pay others. We explain what it is, who files it and when.

When you pay a salary or a professional's invoice, you don't pay it all: you withhold a part. You pay it to the Tax Agency yourself, towards their income tax. Every quarter, with form 111.

How much? On the invoice without VAT, usually 15%. It's 7% if the professional started this year or in the previous two years, and tells you so in writing. That withholding, plus the one on salaries, is what you pay in. If nothing had to be withheld, there's nothing to pay.

An example. Jorge is an electrician. From April to June, he pays his assistant three salaries, with 180 euros withheld, and the invoices of a designer and his lawyer, with 210 withheld. In July he pays in 390 euros.

Who files it? Anyone who pays salaries or invoices from self-employed professionals. You don't file it if you paid nothing with withholding that quarter, nor for what your clients withhold from you: you deduct that in your 130.

When? From the 1st to the 20th of April, July, October and January. And what counts is the day you pay, not the invoice date.

With Abaq, you upload the invoices and salaries you pay, we prepare your 111, you review it in the app, and we file it with your approval. Abaq, your PRO digital accountant.