# Model 130 — Personal Income Tax

Model 130 is the quarterly fractional payment of Personal Income Tax for self-employed individuals under the **direct estimation** regime. It applies in all tax zones of Spain (Peninsula, Canary Islands, Ceuta, and Melilla).

## Who must file it

- Self-employed individuals registered under the direct estimation regime (normal or simplified)
- Whose 70% or more of their income is not subject to Personal Income Tax withholding

If all your invoices include Personal Income Tax withholding (15% or more), you might not be obliged to file M130. Consult with your advisor.

## What Frihet calculates

Model 130 is based on a year-to-date (YTD) cumulative calculation of the fiscal year. Each quarter includes data from January until the end of the current quarter.

### Main boxes

| Box | Concept | Calculation |
|---------|----------|---------|
| 01 | Accumulated income | Sum of collected invoices (taxable base) from January |
| 02 | Accumulated deductible expenses | Sum of expenses with VAT from January |
| 03 | Net income | Box 01 - Box 02 |
| 04 | Percentage | 20% (fixed) |
| 05 | Fractional payment | 20% of net income (minimum 0) |
| 06 | Accumulated Personal Income Tax withholdings | Personal Income Tax withheld on your invoices from January |
| 07 | Previous fractional payments | What has already been paid in prior quarters of the same year |
| 08 | Total deductions | Box 06 + Box 07 |
| 12 | Difference | Box 05 - Box 08 |
| 13 | To offset | If the difference is negative, it is offset in future quarters |
| 14 | **To pay** | If positive, what you must pay to the Tax Agency |
| 15 | Reduction for starting activity | Only first years of activity (Art. 110 LIRPF) |

### Why it's cumulative

M130 uses cumulative data because each quarter calculates the tax **for the entire year to date** and subtracts what has already been paid:

- **1Q (January-March):** Income and expenses from January to March
- **2Q (April-June):** Income and expenses from January to June, minus the 1Q payment
- **3Q (July-September):** Income and expenses from January to September, minus 1Q and 2Q payments
- **4Q (October-December):** Income and expenses from January to December, minus previous payments

This ensures that by the end of the year, you have paid exactly 20% of your net income.

## How to use it in Frihet

1. Go to the **Tax Calendar**
2. Select the quarter and year
3. Frihet displays the M130 calculation with real data
4. If you have made fractional payments in previous quarters, enter the amount in **Previous payments**
5. Download the PDF for reference

Frihet automatically saves the settings for each quarter so you don't have to re-enter them.

## Income

Frihet counts as income the **taxable base** (subtotal before taxes) of your **collected invoices** during the period. Draft or pending invoices are not included.

## Deductible expenses

Expenses are considered deductible when they have an associated tax type (VAT, IGIC, or IPSI). Expenses marked as "Exempt" are considered non-deductible for M130.

The expense base is calculated as: total amount - input tax + Personal Income Tax withheld by the vendor.

:::tip
Record all your expenses in Frihet with the correct category and tax type. This ensures that M130 correctly reflects your deductible expenses.
:::

## Personal Income Tax withholdings

If your invoices include Personal Income Tax withholding (because you invoice companies as a professional), Frihet accumulates that amount and subtracts it from the fractional payment. It is money you have already "advanced" to the Tax Agency through your clients.

## Practical example

A self-employed individual with the following data in Q2 (accumulated January-June):

**Invoices collected (accumulated):**
- 1Q: 8.000 EUR (with 1.200 EUR Personal Income Tax withheld)
- 2Q: 6.000 EUR (with 900 EUR Personal Income Tax withheld)
- Total accumulated: 14.000 EUR

**Deductible expenses (accumulated):**
- 1Q: 2.000 EUR
- 2Q: 1.500 EUR
- Total accumulated: 3.500 EUR

**1Q fractional payment:** 820 EUR

**Q2 Calculation:**
```
Box 01 (Accumulated income): 14.000 EUR
Box 02 (Accumulated expenses): 3.500 EUR
Box 03 (Net income): 10.500 EUR
Box 05 (20%): 2.100 EUR
Box 06 (Accumulated withholdings): 2.100 EUR
Box 07 (Previous 1Q payments): 820 EUR
Box 08 (Total deductions): 2.920 EUR
Box 12 (Difference): 2.100 - 2.920 = -820 EUR
Box 14 (To pay): 0 EUR (negative result, nothing to pay)
```

In this case, the withholdings and the 1Q payment already cover the tax for the semester. The negative amount is offset in future quarters.

## Relationship with other models

- M130 is filed **together with** [Model 303 (VAT)](./modelo-303) or [Model 420 (IGIC)](./modelo-420) depending on your tax zone
- At the end of the year, M130 data is transferred to the **annual income tax declaration** (Model 100)
- M130 DOES NOT replace Model 100 — it is an advance payment

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