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The Popular Party, already exercising its functions as a new government, and Citizens have agreed as the first law of this legislature a new Autonomous Law . This new law is the first initiative that citizens defend in Congress.
This new law will include a reform of the regime of self-employed (RETA) that will affect about 3.5 million of these workers. Both by Citizens and the Popular Party is expected to be admitted to process and move forward.
We can ask: What is the reform of the law of the autonomous regime? What measures did the PP and Citizens approve in the negotiations? What further measures were agreed upon when the new government began? How will this measure be approved only with the support of the PP and Citizens?
What is the reform of the law of the autonomous regime?
This reform of the law of the regime of self-employed have been agreed by the two parties and includes 150 reforms that were agreed and signed in the negotiations in the month of August.
Citizens has also proposed the creation of a subcommittee of self-employed in the Committee on Employment of the Congress of Deputies.
The bill will collect measures to:
- Modifying fines for delays in payment of fees, from an initial 3 percent to 20 percent that is currently applied for the delay reaches 3 months.
- Greater flexibility to change the contribution base.
- Adapt the payment of quotas to the high and low.
- Bonuses during and after maternity leave.
- Car, electricity and water costs are deductible in the IRPF.
What measures did the PP and Citizens approve in the negotiations?
These are the main measures that were negotiated and agreed with respect to the autonomous ones in the agreement of the PP and Citizens:
- Create a system that allows the self-employed of real income do not exceed the threshold of the Minimum Wage Interprofessional they are not obliged to contribute and can reduce administrative burdens. This improves the capacity of choice of the self-employed.
- Establish contribution formulas for those self-employed who work part-time and for whom I have a vocation of not habitual or complement their economy.
- To achieve full compatibility between the receipt of a retirement pensionand the development of self-employment activities.
- To facilitate that the self-employed choose to be counted, to realize the computation of the pension, the whole of the working life.
- Strengthen the social protection of the self-employed, to make them comparable to the benefits of the general scheme. Taking the first step towards equal contribution.
What further measures were agreed upon when the new government began?
It was also agreed that in the first month of the new government, the new law of autonomous ‘Law of Urgent Reforms of Autonomous Work’ was approved to reduce administrative burdens and improve social protection.
If you want no self-employed person to have to quote or tax for income that he has not actually received. It was further agreed that:
- Extend the reduced quota for new self-employed, for those who start a business, to pay 50 euros per month during the first year, instead of the current 6 months.
- Establish that the withdrawals and withdrawals of Social Security are not made on the first day of the month and that the contribution amount is calculated only for the effective working days of the corresponding month.
- Allow up to four changes during the year in the contribution base of the self-employed. Modulate the regime of surcharges in the Social Security contribution for the self-employed.
- Make it clearer the deduction of the expenses incurred by the self-employed during their professional activity.
- Bonus of the entire quota of the self-employed during the maternity leave or in case of reduction by medical risk demonstrated during the pregnancy, even when a worker is not contracted for its replacement.
- Make an equalization of the economic incentives of the mothers who are self-employed who rejoin their professional activity in the two years after maternity.
- Establish and agree the composition, structure and activity of the Economic and Social Council to the economic reality. Improve the presence of autonomous associations.
First reform: Social contributions
The self – employed registered in the RETA whose net income does not exceed the threshold of minimum wage, equivalent to 655 euros per month or annual amount of 9,172 euros per year, in 14 payments, shall not be obliged to contribute for fixed fees in The terms that are provided by regulation.
Self-employed workers with net losses or income below the Minimum Inter-Professional Salary are obliged to assume fixed costs for contributions of € 290 per month if they do not benefit from the flat rate of € 50 per month.
Although those who earn less than the interprofessional minimum wage do not have the obligation to join or contribute, there is no clear regulation, thus generating some legal insecurity for the self-employed.
The law reform aims to clarify this situation, setting a lower or exempt quote for these cases.
Second Reform: Flat Rate and Quotes
The reform of the law proposes the extension of six to twelve months flat rateof 50 euros per month of contribution for the new self-employed.
Although the proposal does not specify anything in this regard it is expected that existing bonuses of 50 percent and 30 percent for an extra six months, respectively.
The application of this tariff would be extended to those self-employed who resume an activity and who do not exceed two years of discharge in the special regime.
Likewise, specific contribution formulas will be established for self-employed part-time work and for those who have a vocation of non-habituality or economic complementarity as discussed above.
It also raises the possibility that the withdrawals and discharges to the Social Security of the self-employed are not carried out on the first day of the month and the amount of the contribution is calculated by the actual working days and not by the whole month.
Third Reform: Tax Deductions
The law reform seeks to clarify the deductibility of expenses incurred by the self-employed in the exercise of their activity, so that they can count on a greater degree of legal certainty.
Citizens’ proposal includes a deduction in the IRPF of 50 percent of the expenses related to the car partially affected to the economic activity and another one of up to 20 percent in the supplies of water, gas and electricity for those who make their Activity from your home.
Self-employed persons whose billing volume does not exceed 10 million euros may request the refund of VAT for the acquisition of investment property in any settlement period.
Fourth Reform: Cash Criteria in VAT and Debts
The reform of the law intends to reform the special criterion of cash of the IVA so that the autonomous ones can delay their income until the moment of the collection, thus eliminating the limit to delay of the 31 of December.
On the other hand, the reform of the law determines the deferral in the payment of debts with Social Security will take into account the social and economic circumstances of the debtor. It also establishes a reduction in the surcharges for the out-of-term income of social security contributions.
It will also reform the mechanism of the second opportunity to expand the assumptions and conditions to benefit the settlement of outstanding debts in the event of a competition of creditors.
We want to eliminate the figure of the payment plan, which obliges the debt to be liable for the liability that had not been exonerated for at least 5 years after the provisional declaration of benefit.
Also if you want to relax access to the extrajudicial system of payments to allow the negotiation of debts with the Treasury and Social Security.
Fifth reform: Benefit, allowance and compatibility with the pension
The reform of the law wants to modify the termination benefit , with the aim of speeding up its processing and extending its duration to be similar to the unemployment benefit of the employees.
It is intended to create a subsidy for the cessation of activity, similar to the subsidy of the unemployed who were employed, who can benefit those self-employed who has exhausted his benefit by the cessation of activity.
The reform of the law establishes the compatibility of self-employed workers with the receipt of a retirement pension and determines the fact of the perception of the pension by the self-employed.
Sixth Reform: Conciliation and Partnerships
The law reform proposes measures to promote reconciliation between the work and family environment of the self-employed.
It makes an exception to self-employed economically dependent on the prohibition of hiring an employee or subcontract part of their activity in cases of dependency care, maternity, or temporary disability, as well as exceptional circumstances of accumulation of orders.
It tries to improve the bonuses for family care, periods of rest for maternity, adoption, foster care, risk during pregnancy, risk during breastfeeding or suspension for paternity, and for self-employed women who return to their activity after maternity.
All this in order to make an equalization of the social protection of self-employed workers with that enjoyed by employees.
Finally, the reform of the law aims to reinforce the representativeness of professional associations of self-employed workers, declaring the most representative public utility.
It intends to play a significant role in the social dialogue as institutional representatives of the self-employed, and would have a presence in the Economic and Social Council.
The PP and Citizens expect the support of the other parties in cross-cutting measures
The two parties hope to have the support of other political forces . They are transversal measures, which affect many Spaniards, who understand little of political colors and want more solutions .
The desire to modernize the labor framework for the self-employed, with which Citizens wants to be the first party to defend their law in the Congress of Deputies, is complemented by urgent measures.
Citizens expect that the agreement with the PP will be enough to implement these measures, with a reform of the Special Regime for Self-employed or Self-employed (RETA), and that within a maximum term of six months from the start up should issue An opinion.
