The income payment threatens to imbalance the income statement of thousands of self-employed people



The new income contribution system for the self-employed designed by Jose Luis Escrivá’s Ministry of Integration and Social Security and agreed with the main organizations of the self-employed hides behind its fifteen-section scope according to income level, and its famous flexibility to move freely from one to the other throughout the year, And it’s a tax problem currently awaiting resolution, as revealed by several tax advisors ABC consulted. The crux of the problem relates to the quota regulator that was put into place in the reform approved last summer. This provides for an upward or downward adjustment of Social Security contributions paid in a given fiscal year once the tax administration has evidence of true income declared and reported to Social Security, so that the latter can claim the remaining shares for payment in the event that the declared income places the self-employed In a category higher than that in which he/she is included or will have to incur a refund in case the income of the self-employed person concerned was lower than the category in which he/she decided to be included at the beginning of the year. “The rule spells out exactly how self-employed entrepreneurs must organize their social contributions in cases where their annual income does not correspond to the bracket that was established in the previous year, but it does not explain how the tax will be implemented,” explains Juan Torres, president of the Spanish Federation of Professional Associations of Tax Technicians and Tax Consultants ( Fettaf), the regulation resulting from this adjustment Impact on personal income tax This refers to the fact that any subsequent adjustment of social contributions paid by the self-employed worker in a given year directly changes the income reported for that particular year and, therefore, the tax bill paid for that income ., where contributions are accounted for as an expense when preparing the income statement for the year.”It can happen that the settlement of contributions paid to Social Security in a given year in relation to what was initially paid was of such a size that it caused a decrease in net income reported until the self-employed worker was placed in a bracket A contribution different from that which resulted in the initial settlement, which would force a new settlement of the social security contribution and, therefore, a new adjustment in the tax bill. We could get into an endless loop,” warns the Fataf chief. The relevant news standard is no recession in hiring the self-employed: they only increased by five in all of 2022 Daniel Caballero It’s the worst statistic since the financial crisis in 2012 He added two months Already with a decrease in affiliation.No indication in the reform of the contribution system for the self-employed to the financial dimension of settlements or the absence of a standard set by the Treasury yet on how to act in this circumstance, which may affect the income of 2023 Statement (to be implemented in 2024) for thousands Self-employed, make tax advisors have been transferred – so far unofficially – to the Ministry of Finance formed in search of a guide to work in such cases.From Fettaf, it is ensured that information is collected in order to raise an official inquiry to the Directorate General of Taxes to clarify how Correction of the IRPF statement in case of settlement. Both the Ministry of Integration and Social Security and the Ministry of Finance have underestimated this phenomenon. They realize that this will only happen in specific cases and that its real relationship to both the normal functioning of the reform and the tax system is very small. From Ministry It was clarified that, to this day, the General Directorate of Taxes has not even been asked to announce a statement in this regard. Searching for a solution In the opinion of Javier Martín, managing partner of legal firm Ideo and tax advisor for the National Confederation of Self-Employed Workers ATA, “the most logical solution would be for fees paid in 2023 to be charged to fiscal 2023 and any subsequent adjustments to be carried out could be declared as an expense in the fiscal year 2024″. According to the Social Security Act, in fact, settlements derived from the application of this system must be settled before the end of the month following the month in which the taxpayer is notified of the outcome of the settlement. In the opinion of Joan Torres, this would indeed be the simplest solution, although it raises the objection that it would change the accounting and tax standard, because it would systematically transfer to a subsequent year the effective compliance with tax obligations relating to the year. concrete.

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