Estimation of annual income according to the contribution rules of the new self-employed regime
As of January 1, 2023, the new contribution system has entered into force. The determination of the contribution base of self-employed workers is linked to their income for the year obtained in the exercise of their economic, business or professional activities. Your monthly contribution base will be determined each calendar year based on your forecast net income from the self-employed, within the general table.
The Social Security has disseminated in its official publication a series of examples to help the self-employed to know the amount of their monthly contribution as of January 1.
It should be taken into account that it is essential that those who are self-employed know not only their net earnings from work, but also their real monthly income, deductible employment expenses, the generic expense deduction and the final figure of their personal income tax. real.
The general table will be established by the Ministry of Social Security, which will include the minimum and maximum limits for each category of self-employed workers. The annual net income forecast will be determined based on the income declared for the previous year or on a declaration made by the self-employed worker to that effect.
In addition, self-employed workers must contribute monthly in advance, based on the estimated income forecast, with an adjustment at the end of each calendar year. The amount paid in advance will be deducted from the total fee owed for that year.
How to calculate the self-employed fee based on real income per month
The returns that make up the contribution base will be determined by the rules provided for in the Personal Income Tax regulations for calculating the net return. Once such yields have been determined, a deduction for generic expenses of 7% will be applied (except in some exceptional cases, such as that of directors, in which the deduction will be 3%).
Income subject to the contribution base will include all forms of income, such as wages, salaries, pensions, annuities, royalties, dividends, interest and capital gains. In addition, any other income derived from business activities or investments will be included in the calculation.
In certain cases, special deductions may be applied when calculating it. For example, contributions to Social Security programs can be deducted up to a certain amount. The exact amount that can be deducted depends on country regulations and will vary from jurisdiction to jurisdiction.
In the event that their income forecast increases or decreases throughout the year, the self-employed person must adjust, choosing a new one according to the new sections in which they are located. These will be provisional and will be subject to regularization once the Tax Administration (AEAT) has communicated your tax data electronically.
In the event of changes in their income, self-employed workers must notify their mutual as soon as possible. In this way, they can adjust to their new situation and avoid being asked for possible surcharges or refunds.
The rates vary from a minimum amount of 230 euros per month for the self-employed who earn less than 670 euros each month to a minimum expense of 500 euros per month for those who have a net income of more than 6,000 euros each month.
For the 2024-2025 period, the self-employed with a net income of less than 670 euros will see their quota reduced to 225 euros per month. Then, in 2025, the figure will be further reduced to 200 euros per month. After this transitional phase, the self-employed will be required to pay a fee equivalent to their real net profit by 2032. The review corresponding to these three years will be carried out again in 2028 and once more in 2032.
Personal Income Tax Objective Estimation Regime (Modules)
Finally, the excess or deficit of the yields communicated by the Tax Administration applied provisionally will be subject to distribution among the 12 months of the calendar year (or the proportional part in the case of provision of services during a shorter period). If your final contribution base was already between the minimum and the maximum corresponding to the tranche in which your returns are included, it will not be necessary to regularize.
If it is lower than the provisional one applied by the Tax Administration, it will be necessary to regularize this difference to avoid a surcharge. In the same way, if it is higher, you can request a refund of the amount paid in excess.
In any case, if you wish to regularize or request a refund, you must submit a tax modification declaration through your personal area on the AEAT website.
If the provisional quote made is less than the quota corresponding to the minimum quote base of the tranche in which your returns are included, you must enter the difference between both quotes until the last day of the month following the notification of the result of the regularization. If it is higher than the quota corresponding to the maximum base of the tranche in which their yields are included, the Treasury will proceed to return the difference between both quotations before April 30 of the following year.
You can find more information on the official website of the Spanish Tax Agency.
Our professionals will advise you on any question regarding the new self-employment contribution regime.