When can I change my self-employed contribution base?
If you are self-employed, remember that you have until 30 September to change your contribution base.
If the deadline expires tomorrow, but if you are not interested in adjusting your contribution base to your income now, when can I change my self-employed contribution base?
As a result of Law 6/2017, of 24 October, on Urgent Reforms for the Self-Employed (in force since January 2018), the self-employed can change their contribution base 4 times a year.
This is very interesting for the group, as they now have 2 opportunities to change their contribution base, to be able to do so up to 4 times per calendar year.
The aim of this measure, created by the Self-Employed Law, is to make it easier for the self-employed to adapt their contributions to the turnover of their business.
It can also help those who need to increase their contribution base in order to access higher benefits in the event of retirement or unemployment.
What are the deadlines for applying to change the contribution base?
Last June was the second deadline for self-employed workers to change their contribution base and modify their contribution from 1 July 2022.
Self-employed workers who have not yet changed their contribution can make the change for the new financial year.
They will have until 30 September to change their base and, in this way, their contribution will be modified from October onwards.
The Social Security website publishes the deadlines for the self-employed to request a change in their contribution base. Here are the deadlines:
From 1 January to 31 March. With effect from 1 April.
From 1 April to 30 June. With effect from 1 July.
1 July to 30 September. With effect from 1 October.
From 1 October to 31 December. With effect from 1 January of the following year.
Which contribution basis should I choose?
You can choose between the contribution bases between the one you have been paying and the limit that applies to you.
When making the change, you can indicate on the TGSS website that the automatic annual revaluation should be applied from 1 January of the following year, or you can manually specify the base you want to apply.
The contribution bases are set each year by the Government, establishing a maximum and minimum base. From 1 January 2022 until 31 December 2022, the minimum contribution base is 960.60 euros per month and the maximum base is 4,139.40 euros per month.
Your monthly contribution will be calculated by applying the contribution rate of 30.6% to the chosen base, except if you are self-employed with a flat rate, which is a fixed amount of €60 per month for a set period.
Remember that the contribution base chosen is important, as the quality of the social benefits you receive, for example unemployment or retirement benefits, will depend on it.
An interesting new development in terms of contributions: following a change in TGSS criteria, self-employed companies can also benefit from the flat rate. And they can claim it if they have been registered in the last 4 years.
What does the change of base service allow?
Social Security indicates the options that this service makes possible, including the following:
Request that the contribution base is automatically increased by the same percentage as the maximum bases.
Modify the contribution base in the Special Scheme indicated.
Obtain proof of the request made.
Thank you very much for reading this article. Tax&Law Spain can help you to overcome other complex matters regarding the overdue payment of invoices and tax reporting in Spain. If you have questions considering the change of your autónomo payments and you are looking for a professional advice and guidance, you can contact me via WhattsApp (+49 1520 8381499) or e-mail (erica@taxandlawspain.com).
