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The Council of Ministers Approves the New Contribution System and Other Points of Interest for the Self-employed

Manubens Abogados's picture
Published: 29/07/22 - Country: Spain

We inform you that the Council of Ministers last Tuesday, July 26, approved the Royal Decree-Law establishing the new contribution system for the self-employed based on real income, which will have a transition period of nine years, until 2032, and will begin to be applied as of January 2023, with 15 installment tranches that will range from 230 euros to 500 euros and will vary until 2025, depending on the net income of self-employed workers.

Its objective is to equate benefits between the general regime and RETA. The average pension in the self-employed is 43% lower than the general, about 600 euros difference. However, this reform does not only address the contribution table, since the regulation that approves today contemplates other points of interest for the self-employed, as we will see below.

How are the freelance quotas?

The proposal sets a minimum fee of 230 euros per month for 2023, 7 euros less than in the previous one, for the self-employed with net income of less than 670 euros. In 2024, the fee will drop to €225 and will drop to €200 in 2025.

On the other hand, the highest contribution is set at 500 euros per month, which includes self-employed workers with net monthly income of more than 6,000 euros. These quotas will also be adjusted in 2024 and 2025.

Between the minimum and maximum contribution, a total of 15 sections are opened according to net income.

Other news

Supervisory role of the Tax Agency. One of the main novelties of the new system is that it gives the Tax Agency an important supervisory role both when it comes to determining the real income that is decisive when setting. The regularization corresponding to each fiscal year will be carried out in the following year and will be carried out based on the data communicated both by the Tax Agency and by the Provincial Administrations. The role of the treasury will also be decisive when it comes to knowing and applying the different deductions to which the self-employed worker is entitled when setting their net income on which the contribution in tables will be applied.

General deductions for the self-employed. The information from the Treasury will also be crucial when it comes to crossing data with Social Security in terms of deductions. In addition to those included in the corresponding regulations, the model agreed upon last week contemplates two new ones. The new rule that will come into force as of January 1, 2023 establishes a deduction for generic expenses of 7% for individual self-employed workers, while this same deduction is reduced to 3% for self-employed workers. corporate.

Up to six section changes. The number of times that the self-employed can modify their contribution base is extended. From now on they will be allowed up to six instead of four. The objective is to adjust the price to its performance forecast for the year, since it can vary depending on the activity carried out, which gives the new system greater flexibility. As stated in the bill, provided that the General Treasury of the Social Security is requested, they may make this change with effect from the first day of March, May, July, September, November and January of the following year. In addition to the application, the workers must make a declaration of the monthly average of the annual net economic returns.

The cap on contributions for people over 47 years of age disappears. As of 2023, the contribution ceiling for workers over 47 years of age disappears. This limitation no longer makes sense, since with the new system the condition that will govern will be that the income guarantees that it is in the correct contribution bracket. Previously, these higher contributions were used voluntarily to raise the amount of the retirement pension in the years prior to reaching the retirement benefit.

Reduced fee: 80 euros. The start of activity as a self-employed worker will have an aid in the form of a reduced fee. With an initial duration of 12 months, the new rule contemplates a fee of 80 euros per month. This duration can be extended for another year, if the self-employed person registers income below the SMI throughout the first year of activity as a self-employed worker.

Deduction of 10% of the pension plan. Another novelty that is contemplated for the self-employed is the deduction of 10% of the contributions to the pension plan in the personal income tax (IRPF).

Priority reinforcement of electronic processing. The mobile phone is going to become the main management tool for the self-employed. It will be possible to register, cancel, choose the section and quota, as well as access the data and file of the self-employed person and even carry out simulations to know as accurately as possible the quota to be paid based on income before proceeding to making a discharge.

Partial cessation of activity. A benefit of 50% of the regulatory base compatible with another activity is recognized and can be collected from four months to two years, without having to cancel the RETA and without the need for closure. To access it, you must have a 75% reduction in the level of income or sales when there are no workers, or this same condition for two quarters, income not exceeding the SMI and a reduction in working hours or suspension of contracts of 60% of the staff, if there are workers in charge.

You can contact this professional office for any questions or clarification you may have in this regard.

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Manubens Abogados's picture

Manubens Abogados is a multidisciplinary law firm having a clear national and international scope, specializing in providing all kinds of clients with a full range of services. Manubens Abogados offers high quality advice and excellence to the clients. His deep knowledge of the areas of work and the experience accumulated during years of active and dynamic exercise of the profession, has allowed Manubens to offer safe, reliable and innovative legal solution, with  a high added value in all disciplines.