2023-10-28 00:25:19
Saturday, October 28, 2023, 00:25
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Next October 31 is the last day for self-employed workers to change their contribution base to adjust it to their real income. If they do not do so, next year the General Treasury of Social Security (TGSS) will regularize the contributions paid throughout 2023 based on their real economic performance.
On January 1, the new contribution system for self-employed workers came into force, which will be rolled out gradually. For the first years (from 2023 to 2025), a scheme of 15 sections was designed that determine the minimum and maximum contribution bases. In addition, it set quotas depending on the income range in which the self-employed person fell.
The worker had to calculate, therefore, the net returns he expected to obtain throughout the year and then choose a contribution base. If at the end of the year the income exceeds the forecasts, Social Security will proceed, the following year, to regularize the contributions.
In order for this calculation, which is very difficult to carry out for many self-employed workers, to be as close as possible, Social Security opened six windows throughout the year so that workers could adjust their contributions based on their income.
The first of them closed on February 28. Until that day the contribution base could be changed for subsequent months. The same situation was repeated every two months. The last opportunity to make this modification will be October 31.
The way chosen to notify the income forecast and modify the contribution bases is electronic, through the ‘Modification of self-employment data’ service in Import@ssdigital portal of the TGSS.
The regularization will apply to all self-employed workers, regardless of whether or not they have adapted to the new contribution system – adjusting their contribution base to the monthly average of the annual net income they expect to obtain during the current year – or have discharged in 2023.
This adjustment will be made by the TGSS through an automated process once the workers’ tax data are available after the income campaign. The resolution of the regularization will be notified through NOTESS, the Social Security telematic notification system, “as this is a group obliged to receive notifications and communications by electronic means,” explains the public entity in its web magazine.
The start date of the process of regularization of contributions for the year 2023 will “predictably” occur in the second half of 2024, although it will depend on the moment in which the TGSS has the information to be sent by the corresponding tax administrations.
In the event that, as of December 31, 2022, the self-employed person was contributing for a base higher than that which corresponds to them based on their returns, they could maintain it throughout the year 2023. They also had the option of choosing a lower base -located between the current one and the one corresponding to its returns-.
You can consolidate that higher base if the result of the annual regularization is in your favor and you waive the refund. In this way, the contribution bases will be definitive and will be taken into account for the purposes of Social Security benefits.
How to calculate returns
The income that must be reported will be the sum of the net income – income minus deductible expenses – and the amount of contributions paid to Social Security. A deduction for general expenses of 7% will be applied to the net income, and as long as the worker has been registered in the special self-employed regime for 90 days. Percentage that, in the case of commercial partners, is reduced to 3%.
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