The Annual Regularization of Self-Employed Contributions in 2024
Content:
The General Treasury of Social Security (TGSS) has begun the process of adjusting self-employed contribution bases and contributions for the 2023 financial year. This procedure is based on your self-employed income (according to your net declared income) and offers self-employed workers the option of adjusting their contribution base.
In this article, we analyze the key points of this process, the enabled services, and the important dates so you don't miss a thing.
Start of the regularization procedure
The process began on December 9, 2023 , with the issuance of the first notifications through the NOTESS platform. These notifications include crucial information for self-employed workers who have contributed more than their net income.
Self-employed workers may choose to maintain this higher contribution base until the last day of the month following the notification received, i.e., generally until January 31, 2025. This option is key for those who wish to maintain their previous contribution within the established limits.
Services enabled
To facilitate this process, the TGSS has implemented various tools and support channels:
Virtual Office: A new service allows you to check regularization data and exercise the option to maintain the higher contribution base.
Online support: Through the CASIA system, RED authorized personnel can manage specific queries regarding the process.
Telephone support: New dedicated numbers have been set up to address questions related to regularization.
Key steps for the self-employed
1. Regularization Consultation: Workers can access detailed information on the data considered for regularization, including net income and the periods analyzed.
2. Exercising the option: Those who wish to maintain their higher contribution base can do so through the corresponding button on the enabled platform.
3. Deadline: It is essential to make a decision before the date indicated in the notification, otherwise the corresponding base will be automatically applied based on net income.
Communication by email
The TGSS will continue to inform RED authorized workers about the progress of the process, providing early access to relevant data for each affected worker. However, this information will be for guidance only until official notification is issued .
Regularizing tax bases and contributions is a fundamental process for self-employed individuals, as it ensures that contributions reflect their actual income . Be sure to carefully review the notifications you receive and utilize the available resources to make informed decisions.
The calculation process for the annual adjustment of self-employed workers' contributions to the Social Security system follows a system based on declared net income and complies with current regulations.
How will it be carried out?
1. Initial calculation basis
It is based on the computable net income that self-employed workers have declared to the corresponding tax administration during 2023.
The General Treasury of Social Security (TGSS) uses this information to determine the final contribution base that should have been applied based on these earnings.
2. Comparison of bases
The provisional contribution bases for self-employed workers in 2023 are compared with the contribution base adjusted for eligible net income.
If a self-employed person contributed based on a higher contribution base than that calculated based on their net income, they may retain that higher contribution base, subject to the limit of the contribution base they had as of December 31, 2022.
3. Regularization and adjustment option
Maintain a higher contribution base: If the worker chooses to maintain a higher contribution base, they must exercise this option before the last day of the month following the notification of the procedure (generally until January 31, 2025).
Adopt the calculated base: If the worker does not take any action, the contribution base corresponding to net income will be automatically applied.
4. Information considered for regularization
The data used includes:
Contribution periods.
Net returns provided by tax authorities.
Periods exempt from regularization.
Complete details of this information can be found through the service provided at the Social Security Virtual Office.
5. Result of the process
Once the final base has been calculated, the TGSS will adjust the corresponding contributions.
If there is a difference between the provisional and final installments paid, the system may generate an additional charge or refund as appropriate.
Services available for the self-employed
To help self-employed workers in this process, the TGSS has enabled two tools: one to check the details of your regularization and another for telephone and online assistance.
The best thing you can do is schedule a free consultation with an expert so they can get you up to speed quickly and easily.
With this annual regularization of contributions, the Treasury seeks to ensure a fair balance between actual income and contributions paid by self-employed workers.
Therefore, it is crucial that those affected review the regularization data, consider their financial situation, and use the best tools to avoid any problems.
At InnoTaxes, we make it easy for you. We offer personalized, multilingual advice so you don't have to worry about a thing.
Schedule your free consultation here , or send us a WhatsApp and we'll help you. We've helped many self-employed workers, you can be next.