SOCIAL SECURITY PAYMENT FOR COMPANIES DIRECTORadmin
Corporate director social security payment and flat rate. If you are the adminisrator of a company this may interest you.
A few months ago, the Supreme Court confirmed that self-employed companies (those listed in the RETA because they have control of their company) also have the right to apply the incentives provided for ordinary self-employed [TS 03-12-2019]
Well, finally the Treasury is going to apply these incentives ex officio (until now it continued to oppose it).
Remember the amount:
The self-employed person will only pay 60 euros of quota during the first 12 months if he contributes by minimum base. If your base is higher, you can apply a reduction of 80% during those months.
Then you will have a 50% reduction for six months, and another 30% in the following six months.
If you are under 30 years old when you sign up –or 35 if you are a woman–, the 30% reduction will be applied for a further 12 months.
Finally, the Treasury will apply the incentives to the self-employed.
SOCIAL SECURITY / SELF-EMPLOYED
Corporate and flat rate: says the Supreme
Indeed, a recent ruling by the Supreme Court confirms the right of a self-employed person to enjoy the bonuses generally provided for self-employed persons. If you are a corporate member, claim the incentive!
On the one hand: corporate. If you have effective control of your SL and work in it, you are required to list on the RETA. This figure is known as “corporate self-employed.” Note. You are considered to have effective control if you own at least 50% of the shares. It is also presumed that it will have such control in other cases (for example, if it owns at least 25% of the capital and also exercises direction and management functions).
On the other hand: incentives. if a self-employed person causes initial registration in the RETA or has not been registered in said regime in the previous two years, they will only pay 60 euros of quota during the first 12 months if they contribute by minimum base (if their base is higher , you can apply a reduction of 80% during those months). Note. Afterwards, you will have a reduction of 50% for six months, and another reduction of 30% in the following six months (if you are under 30 years of discharge -or 35 if you are a woman-, the 30% reduction will be applied for a further 12 months).
Controversies with the Administration
According to Treasury. When a freelancer signs up, this bonus is applied automatically. Attention! However, the Treasury does not apply the incentive to self-employed companies because, according to it, the law indicates that the benefits apply to members of labor companies and worker members of cooperatives included in the RETA, without mentioning corporate members.
According to the courts. Despite the above, some company owners claimed the incentives and some courts agreed with them. Well, the matter has ended in the Supreme Court and it has confirmed that said group also has the right:
Although the law indicates that members of labor societies and members of cooperatives have the right to the incentive, it does not expressly exclude members. Therefore, an interpretation to the contrary cannot be made.
The scope of the law that regulates incentives includes corporate members. In this scope of application, the members of labor companies or cooperatives are not mentioned, and therefore the specific section of the law that regulates benefits does include them (since if it did not include them, they would not be entitled to the incentive) .
The purpose of the bonuses is to promote self-employment and an entrepreneurial culture by reducing initial costs, and this purpose is fulfilled whether an activity is carried out personally or through a company.
Claim the incentive
Four years. Therefore, if you are a self-employed company and the Treasury has not recognized the incentives, file a request for the return of undue income for contributions made in excess. You can request the incentives up to a maximum of four years ago.
Social Security must respond within the following six months. If you do not answer after said period, the request is understood to be rejected. From there:
If the application is denied, you must file an appeal within one month (the term to resolve will be three months).
If the appeal is dismissed, you must file a claim in court.
If you need help to request the flat rate and file the claim of undue income, Contact us and we will be happy to help you.