Self-employed workers are a group that bears excessive financial burdens, in addition to high costs of fulfilling their formal obligations to the Public Treasury and Social Security, which do not take into account the income differences with salaried workers.

These conditions, which affect more than three million people in our country, are expected to be reversed this year thanks to the measures established by the Government through the Self-Employment Law and the Urgent Reforms of the Self-Employment Sector.

We compile the fiscal and administrative measures that will affect the activity of self-employed workers with this new reform, which will come into effect with the approval of the General State Budget for 2017 , a date that is still unclear.

SOCIAL SECURITY

• Self-employed contribution 2017. This will depend on the provisions of the General State Budget Law. In 2016, the monthly contribution for self-employed workers was €267.04, corresponding to the increase in the CPI. Following the same process, the self-employed contribution for 2017 will rise to €269.71. The maximum contribution rate will increase from €3,642 per month in 2016 to the expected €3,751 in 2017.

• Contribution for corporate self-employed workers. If the contribution in 2016 was 1,016.40, in 2017 it will be 1,152.79 after applying the 8% increase in the minimum wage. Therefore, the maximum base, which was set at 3,642 euros per month, will increase to 3,751 euros per month for 2017, which represents an increase in the maximum contribution of 32.77 euros per month.

• Extension of the Flat Rate from six months to one year for new self-employed workers.

• A flat rate for corporate self-employed workers is not contemplated, despite rulings in favor of corporate self-employed workers.

• The possible reform of the Special Regime for Self-Employed Workers (RETA), which could establish the collection of 100% of the retirement pension while continuing to work.

• 100% bonus on maternity leave , with exemption from paying the fee during maternity leave.

• The Proposed Law on Urgent Reforms of Self-Employment establishes that registrations and deregistrations with Social Security will be effective at the time of their request .

• Self-employed workers may make up to four changes to their contribution base per year.

• Flexibility in surcharges for late payment of installments.

• The implementation of the progressive contribution for self-employed workers based on actual income is contemplated with the reform of the RETA (Tax Administration for Social Security), which would also eliminate the obligation to contribute for self-employed workers who do not exceed the minimum wage.

TREASURY AND TAXES FOR THE SELF-EMPLOYED

• Deferral of tax debts for taxes passed on, which can be deferred without collateral up to 30,000 euros.

• New deductions for self-employed individuals , such as expenses related to automobiles partially used for economic activity and water and electricity supplies for a professional who does not have premises and performs work from home.

• Changes to corporate tax will affect only large companies, including an increase in the minimum rate from 18% to 23%.
• Civil companies with a commercial purpose and an economic activity must pay corporate tax.