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New contribution System

12 de December de 2023
Validado por gcoweb

Last July, Royal Decree-Law 13/2022 was approved, establishing a new contribution system for self-employed workers.

Currently, the system allows the worker to choose their contribution base regardless of the income they may obtain from the activity carried out. However, starting January 1, 2023, with the new system, self-employed workers must contribute based on the net income they earn.

The modification of the system is not unexpected and complies with the recommendations of the Toledo Pact for the sustainability of the social security system. As specified in the preamble of the Royal Decree-Law, the current system has led to around 80% of self-employed workers choosing the minimum contribution base regardless of the actual income obtained from their activity, thus making the system deficitary.

That said, starting January 1, 2023, self-employed workers will contribute based on the net income obtained during each calendar year. They will contribute based on the contribution base they choose from the published tables depending on their forecast of the monthly average of their annual net income. At the end of the year, a regularization will be carried out based on the net income actually obtained, determining the definitive contribution base.

To explain the new system, we will divide the explanation into 4 parts based on the timeline of actions that a self-employed worker will be affected by. Each part will have some questions and their corresponding answers. In parts 2 and 3, you will also find a practical example.

The parts are as follows:

Choice of provisional contribution base
Calculation of net income obtained
Regularization
Special cases

Choice of contribution base A. How is the provisional contribution base chosen?

Each year, a general and a reduced table of contribution bases will be established. Both tables are divided into consecutive ranges of monthly net income amounts. Each of these ranges is assigned a minimum monthly contribution base and a maximum monthly contribution base. Self-employed workers must choose the monthly contribution base that corresponds to them from among the bases in the general or reduced table, depending on their forecast of the monthly average of their annual net income.

B. Once the contribution base is chosen, is there a possibility to change it?

Yes, self-employed workers can change the base up to six times a year, choosing another one within the minimum and maximum limits applicable to them from the table according to their forecast of the monthly average of their annual net income.

The base change can occur on the following dates: a. March 1, if the request is made between January 1 and the last day of February. b. May 1, if the request is made between March 1 and April 30. c. July 1, if the request is made between May 1 and June 30. d. September 1, if the request is made between July 1 and August 31. e. November 1, if the request is made between September 1 and October 31. f. January 1 of the following year, if the request is made between November 1 and December 31.

To make this change, in addition to choosing a new base, they must declare the average monthly amount of net economic income.

C. Can all self-employed workers choose the base they want from the general or reduced table depending on their forecast of annual income?

No, in certain cases, there will be no right to choose or this will be limited without being able to choose a base; or being able to choose, it may not be lower than a specific base.

The cases are as follows:

No right to choose:

Self-employed workers who have been registered by default
During the period between the registration date and the last day of the natural month immediately before the effective date of registration. The contribution base will be the minimum base of range 1 of the general table (€950.98), unless the Labor Inspectorate has expressly established another higher contribution base.
Self-employed workers in applications for registration submitted late
During the period between the registration date and the last day of the natural month immediately before the month in which the registration application was submitted. The contribution base will be the minimum base of range 1 of the general table (€950.98).
Self-employed workers who have failed to submit their income tax return
The contribution base will be the minimum base of range 1 of the general table (€950.98).
All individuals who have been self-employed at any time during the tax period are required to file an income tax return (Art 96.2.c Law 35/2006 Personal Income Tax).
Self-employed workers who, having filed their income tax return, have not declared income for the purpose of determining net income when the direct estimation method applies
The contribution base will be the minimum base of range 1 of the general table (€950.98).
Beneficiaries of the new flat-rate fee (a special mention is made in point 4)
During the first 12 months and, if the conditions are met, during the following 12 months, the contribution base will be the minimum base of range 1 of the general table (€950.98).
Self-employed workers who are recipients of benefits derived from the cessation of activity
The contribution base will be the minimum base of range 1 of the general table (€950.98).
Temporary self-employed workers who have suspended their activities due to a temporary incapacity
The contribution base will be the minimum base of range 1 of the general table (€950.98).

Limited right to choose:

Self-employed workers included in the objective estimation method or special accounting regimes
The contribution base will be within a specific range defined by law.
Self-employed workers who have the obligation to provide receipts or invoices with fiscal amounts
They must choose a minimum contribution base of 1,220.60 euros.

D. What are the minimum and maximum monthly contribution bases of the general table for the year 2023?

For 2023, the general table sets the following minimum and maximum monthly contribution bases: