How does the Simplified Optional Income Regime (5% / 7%) for income tax work?

The Simplified Optional Regime on Income taxes gross income, with no deduction of costs or expenses: 5% on the first Q30,000 a month and 7% on the excess. Payment is monthly and final, either through withholding by clients or by direct payment. A taxpayer paying a flat rate on its taxable income is also exempt from the Solidarity Tax (ISO) (Article 4(f), Decree 73-2008).