How does the procedure for regularizing self-employed workers' contributions in 2023 work?

The year 2023 has marked a milestone in the Special Regime for Self-Employed Workers (RETA) in Spain, with the implementation of a new contribution system, established by Royal Decree-Law 13/2022, based on the actual net income of the self-employed, which is carried out once the State Tax Administration Agency (AEAT) provides the final tax data of each self-employed person.

This change seeks greater equity in contributions to Social Security, aligning contributions with the economic capacity of each self-employed worker.

Quota Regularization Procedure

In practice, the regularization of self-employed contributions for the year 2023 will be carried out in 2025, through the following process:

• Determination of Net Income: After the income tax return campaign, the AEAT calculates the annual net income of each self-employed person and shares this information with the General Treasury of Social Security (TGSS).
• Comparison with the Contribution Bases: The TGSS compares the net income provided by the AEAT with the contribution bases that the self-employed person chose during the year 2023. If a discrepancy is detected, the regularization is carried out.
• Regularization Notification: The TGSS notifies the self-employed person of the result of the regularization through the telematic notification system (NOTESS). This communication details whether there is a difference in favor or against the worker.
• Adjustment of Quotas:
  • Self-employed workers who were already paying contributions on a basis higher than their earnings before 2023 have the right to continue to maintain this basis, if they wish . In this case, they must expressly state this, because if they do not, their contribution base will be adjusted to what they have actually earned (and their contribution base for 2023 will be reduced).
  • If the self-employed person has paid less than the amount due: The difference must be paid before the last day of the month following the notification. For example, if the notification is received on December 15, 2024, payment must be made before January 31, 2025.
  • If the self-employed person has paid too much : The TGSS reimburses the excess before April 30 of the year following the year in which the AEAT communicates the income, that is, before April 30, 2025.

Implications for Business Owners and Entrepreneurs

Things to consider:

• Financial Planning: It is essential to anticipate possible adjustments to Social Security contributions, since a regularization may imply additional payments or refunds that affect the liquidity of the business.
• Accounting and Tax Advice: Having a specialized advisor can facilitate compliance with obligations and optimize the management of contributions, avoiding penalties and taking advantage of possible benefits. Updating Contribution Bases: Self-employed workers can modify their contribution base up to six times a year, which allows them to adapt it to income forecasts and avoid significant discrepancies in the annual adjustment.

The Puigverd Assessors team assures that staying informed about current regulations, having professional advice and carrying out adequate financial planning are key to successfully facing the challenges presented by this new contribution system in the RETA.