Accountable shows you a suggested income tax prepayment amount each quarter, based on your estimated taxable income. The goal is to pay 100% of your tax in advance, either to earn a tax bonus or to avoid a surcharge. You can pay in four quarterly installments of 25% each, or make a larger first payment in quarter one.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
In this article, you will also learn how the prepayment amount is calculated in Accountable and how to adjust the amount for a specific quarter.
How do prepayments work?
Prepayments are optional for the first three years of your freelance activity. After that, making prepayments helps you avoid a surcharge on your final tax bill.
Read more about income tax prepayments on the FOD website.
How is the amount calculated in Accountable?
By default, Accountable suggests a prepayment amount based on your estimated taxable income. This works in two ways:
Automated projection based on the revenue and expenses you have recorded in Accountable.
You can override this by entering your yearly taxable income manually, as shown below.
How do you adjust the prepayment amount for a specific quarter?
You can revise your prepayment amount at any time. The figure Accountable shows is indicative only.
In Accountable, when you mark a prepayment item as paid, you can enter the exact amount you paid to the tax office.
If you made no prepayment for a quarter, enter 0€.
Key takeaways
The goal of income tax prepayments is to pay 100% of your tax in advance to earn a bonus or avoid a surcharge.
Prepayments are optional for the first three years of your freelance activity.
Accountable calculates a suggested amount automatically, but you can enter your own taxable income figure manually.
When marking a prepayment as paid, enter the actual amount you paid, or 0€ if you made no payment that quarter.
Need help? Chat with us or email support@accountable.eu, we're happy to help.