Corporate self-employed can benefit from the flat rate with retroactive effect
Did you know that if you are a company administrator you can now benefit from the flat rate?
Not only that, but you can also claim back 4 years of overpaid fees. That’s right,
Finally, after several rulings by the Supreme Court recognising the right of self-employed companies to access the flat rate, the Social Security has changed its criteria. It will allow them to benefit from this rebate under the same conditions as other self-employed workers.
The rulings that have justified this change are ruling no. 1669/2019 of 3 December 2019, ruling no. 286/2020 of 27 February and ruling no. 315/2020 of 4 March 2020.
In addition, the Supreme Court has issued rulings invalidating the appeals lodged by the Social Security General Treasury on this matter.
What is a “corporate self-employed person”?
A self-employed person is someone who either exercises management functions as an administrator or director or is a working partner of a company, provided that he or she has effective direct or indirect control of the company.
He/she will have this control when 33% of the share capital belongs to him/her (25% if he/she is a director) or 50% of the capital is in the hands of the spouse or family members up to the second degree who live with him/her.
What does the flat rate for the self-employed consist of?
The Flat Rate for self-employed workers is a rebate on the monthly contribution to be paid by the self-employed, which is aimed at those who meet the following requirements:
a) Not having been registered as self-employed in the last two years (three in the case of having previously enjoyed a rebate). The Law on Urgent Reforms of Self-Employment shortened the period from five to two years for new self-employed workers, with the exception of the collaborating self-employed worker who maintains the original requirement of five years.
b) Not to be a director of a commercial company.
c) Not to be a collaborating self-employed worker.
The monthly amount to be paid is reduced as follows:
– First 12 months: 80% rebate on the minimum base in the event of paying contributions for bases higher than the established minimum (in the case of the self-employed company worker, this would be 73.57 euros if paying the minimum base and 246.64 euros if paying the maximum base).
– Months 12 to 18: 50% discount on the minimum contribution for common contingencies during the second half of the year (in the case of the self-employed company member, this would be 183.93 euros if they pay the minimum contribution and 616.62 euros if they pay the maximum contribution).
– Months 18 to 24: 30% rebate on the minimum contribution for common contingencies during the following six-month period (in the case of the self-employed company member, this would be 257.50 euros if they pay the minimum contribution and 863.28 euros if they pay the maximum contribution).
– Months 24 to 36: 30% rebate on the minimum contribution for common contingencies only for new self-employed workers under 30 years of age and self-employed workers under 35 years of age (in the case of the corporate self-employed worker, it would be 257.50 euros if they pay the minimum contribution and 863.28 euros if they pay the maximum contribution).
I am going to be self-employed as a company can I apply the flat rate?
Self-employed workers who register as corporate self-employed can apply for the flat rate. And the Social Security will automatically recognise the right to take advantage of this benefit.
This is stated in an official communication from the Treasury, rectifying the criterion it has maintained since the rebate on Social Security contributions for the new self-employed known as the “flat rate” was launched in 2013. Until now, it had denied the application of this aid. And, on many occasions, the courts have ruled in favour of those claiming the application of this measure.
I am already self-employed, can I claim, how do I do it?
Self-employed corporate workers who have been denied the flat rate or who did not even apply for it because they did not meet the requirements at the time, may apply for a refund of the amounts overpaid.
In order to do so, no more than four years must have elapsed since they were registered. In other words, the self-employed companies that will be able to request this are those whose registration was after the last quarter of 2016. The documentation to be provided will be all that which accredits the registration as self-employed in the RETA and documentation accrediting the self-employed worker.
