{"id":147481,"date":"2026-10-13T07:51:55","date_gmt":"2026-10-13T07:51:55","guid":{"rendered":"https:\/\/docs.daftra.com\/?post_type=faq&p=147481"},"modified":"2026-10-13T07:52:14","modified_gmt":"2026-10-13T07:52:14","slug":"how-are-taxes-calculated-in-a-payment-certificate","status":"publish","type":"faq","link":"https:\/\/docs.daftra.com\/en\/faq\/how-are-taxes-calculated-in-a-payment-certificate\/","title":{"rendered":"How Are Taxes Calculated in a Payment Certificate?"},"content":{"rendered":"

The tax is calculated directly from the total value of the work, completely independently of the retention deduction.<\/p>\n

Calculation process:<\/strong><\/p>\n

    \n
  1. Total Work Value<\/strong>: The base value of the work executed in the payment certificate.<\/li>\n
  2. Tax (each tax separately)<\/strong>: A direct percentage of the total work value: 3,500 \u00d7 15% = 525.<\/li>\n
  3. Total Certified Amount<\/strong>: Total work value + tax amount (or tax amounts). Example: 3,500 + 525 = 4,025.<\/li>\n
  4. Total Retention<\/strong>: A percentage of the original total work value (not the approved amount). Example: 3,500 \u00d7 10% = 350.<\/li>\n
  5. Net Amount<\/strong>: Total approved amount \u2212 work retention deduction. Example: 4,025 \u2212 350 = 3,675.<\/li>\n
  6. Advance Payment Recovery<\/strong>: When a percentage-based recovery plan is in place, it is calculated from the \u201cNet Amount\u201d<\/strong>. This line does not appear if there is no recovery plan.<\/li>\n
  7. Net Payable<\/strong>: The net amount after deducting the advance payment recovery, if applicable; this is the final amount due for payment.<\/li>\n<\/ol>\n","protected":false},"author":38,"template":"","categories":[15599,17195],"tags":[17962,15689,17961,17960,17261,17958,17957,17959],"class_list":["post-147481","faq","type-faq","status-publish","hentry","category-construction","category-payment-certificates","tag-advance-payment-recovery-from-net-amount","tag-construction","tag-how-are-taxes-calculated-in-a-payment-certificate","tag-net-payable","tag-payment-certificates","tag-tax-calculated-directly-from-total-work-value","tag-total-certified-amount","tag-work-retention-deduction-from-original-value"],"yoast_head":"\nHow Are Taxes Calculated in a Payment Certificate? - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/faq\/how-are-taxes-calculated-in-a-payment-certificate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Are Taxes Calculated in a Payment Certificate? - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"The tax is calculated directly from the total value of the work, completely independently of the retention deduction. 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