Social Security sets a date for the income tax for self-employed workers

The Minister of Social Security assures that the negotiations “are very advanced,” and dares to set an implementation date.

The negotiations for the new real income contribution system for self-employed workers are so well underway that the Ministry of Inclusion, Social Security and Migration is daring to set an implementation date.

The Recovery and Resilience Plan, which includes the contribution for real income of self-employed workers, is expected to be ready before June 2022. Not only that. It is even known how the exact functioning of the system would be to determine said income.

With the new proposal, as Escrivá has advanced before the Senate Committee on Labor, Inclusion, Social Security and Migration, the self-employed must annually send to Social Security the income recognized in their tax returns.

Report to Social Security

The Minister recalled that it would be in November when self-employed workers will have to send this information to Social Security. Once the Treasury receives it, it will compare the provisional contribution bases with the net returns. The fees will then be regularized either by returning them or by entering the differences.

Currently, it is also being studied to include corporate self-employed workers in this plan, in direct, objective estimation and attribution of income. It would be necessary to determine the situation in which the collaborating family members and the religious would be left.

13 contribution bases

In February the Government presented a plan to the main self-employed organizations to allow contributions based on real income. The proposal contemplated that self-employed workers could choose between 13 provisional Social Security contribution bases based on their expected net income.

According to Escrivá, they are working to achieve “the maximum consensus within the framework of social dialogue.” However, he points out that if the change is made now, the 70% of self-employed workers “would contribute less to Social Security than it does today.”

In 2019 alone, some 1.3 million self-employed workers had net income below the Minimum Interprofessional Wage. On the contrary, 54% of the self-employed, that is, 1.6 million professionals recorded incomes greater than 12,600 euros .