Social Security – Flat rate for self-employed linked…
Posted on Apr 12, 2021
Flat Rate Social Security quota for self-employed linked with a company
The General Social Security Treasury (TGSS) has decided to modify the criterion that it had been applying by which access to the flat rate Social Security quota was denied due to registration in the Special Scheme for Freelance Workers (RETA) for self-employed linked with a company.
Finally, after several judgments handed down by the Supreme Court that recognize the right of self-employed linked with a company to access the flat rate, Social Security has modified its criteria. Moreover, it will allow them to benefit from this bonus scheme under the same conditions as the rest of the self-employed workers.
Who is considered a self-employed linked with a company?
The self-employed linked with a company is an individual who exercises direction or management functions as administrator or director or is a working partner, providing that have the effective control of the company, directly or indirectly. It shall have such control when the individual owns the 33% of the share capital (25% in the case of administrators), or when the 50% of the capital is subscribed by the spouse or any relatives, up to the second degree of consanguinity, cohabiting with him/her.
What is the flat rate Social Security quota for self-employed workers?
The flat rate for self-employed workers is a bonus in the monthly social security fee to be paid by self-employed, which is aimed at those who meet the following requirements:
- Not having been registered as a self-employed person in the last two years (three in case they have previously enjoyed a bonus).
- Not being an autonomous collaborator.
Thus self-employed who register as self-employed linked with a company may apply to access to the flat rate Social Security quota, and the Social Security will recognize, ex officio, the right to avail themselves of this benefit, which application was being denied to date and until the Courts sided with those who claimed against the said measure
The monthly amount to be paid is reduced as follows:
(only for new male self-employed under 30 years of age and female self-employed under 35 years of age).
I am already self-employed linked with a company, can I claim? How do I do it?
- Self-employed linked with a company, to whom the flat rate social security quota would have been denied or even those that did not even request it due to not complying with the requirements, at that time, may request the refund of the amounts paid in excess.
- Documentation required relates to the registration of self-employed in the RETA scheme and also the supporting documentation for the contribution bases and quotas paid of the applicant self-employed for the period claimed.
It is an essential requirement that no more than four years have elapsed since the self-employed registration. In other words, it will be entitled to apply for the refund those self-employed linked with a company which registration date was after the last quarter of 2016. (From October 2016).