.jpg)
1.- SCOPE OF APPLICATION OF THE SELF-EMPLOYED REGIME.
The groups listed below are included in the Special Scheme for Self-Employed Workers (RETA), and are therefore subject to specific regulations governing their relationship with Social Security, which we will analyse further below:
· Self-employed workers aged 18 or over who, on a regular, personal and direct basis, carry out an economic activity for profit, without being subject to an employment contract, even if they make use of the paid services of other individuals. Any owner, lessee, usufructuary or similar title-holder of a business open to the public shall be presumed to fall within this category.
· Also included are the spouse and relatives up to the second degree by blood, marriage or adoption who collaborate with the self-employed employee on a personal, regular and direct basis, provided they are not salaried employees and meet the applicable requirements.
· Book authors.
· Foreign self-employed workers who legally reside and carry out their activity in Spain.
· Self-employed agricultural workers who are holders of farming operations, where the taxable income attributed to them under the former rural and livestock land tax for the 1982 financial year exceeded 50,000 pesetas.
· Partners in general partnerships and general partners in limited partnerships who meet the applicable legal requirements.
· Working members of Associated Worker Cooperatives, where the cooperative opts for this regime in its articles of association. In this case, the minimum age for inclusion in the special scheme is 16 years.
· Co-owners or partners in jointly-owned property arrangements and irregular civil partnerships.
· Those who exercise management and executive functions as a board member or director, or who provide other services to a commercial capital company for profit, on a regular, personal and direct basis, provided they hold effective control, whether direct or indirect, over that company.
· Working members of labour companies (sociedades laborales), whether or not they form part of the company's governing body, where their shareholding in the share capital, combined with that of their spouse and relatives by blood, marriage or adoption up to the second degree with whom they cohabit, reaches at least fifty per cent, unless it can be demonstrated that exercising effective control of the company requires the involvement of persons outside those family relationships.
2.- REGISTRATION, ENROLMENT AND DE-REGISTRATION UNDER THE SELF-EMPLOYED SCHEME.
A. INITIAL ENROLMENT APPLICATION:
The application for enrolment in the Special Scheme for Self-Employed Workers (RETA) must be submitted by the employee to the Provincial Offices of the General Social Security Treasury or its local branches, within 30 calendar days of commencing the relevant activity. Applications submitted outside this deadline will result in administrative penalties and surcharges on the corresponding contributions.
Enrolment is single, even where several activities are carried out that fall within this Special Scheme. That said, inclusion in the scheme does not preclude the possibility of the individual being simultaneously registered under other Social Security schemes.
At the point of enrolment in this Special Scheme, the employee must indicate whether they wish to opt into coverage for the economic benefit in respect of temporary disability (IT), as this cover is voluntary in nature. This option is taken for a minimum period of three full calendar years and is automatically renewed for periods of the same duration.
B. EFFECT OF ENROLMENT: Initial or subsequent enrolments take effect from the first day of the calendar month in which all required conditions are met, provided the application was submitted within the prescribed deadline.
C. DE-REGISTRATION APPLICATION AND ITS EFFECTS: The deadline for notifying de-registration is six calendar days from the date on which the required conditions cease to be met.
De-registration takes effect from the first day of the month following the month in which the individual in question ceases to meet the requirements and conditions necessary for inclusion in the Special Scheme.
3.- CONTRIBUTION ARRANGEMENTS.
A. PARTY LIABLE TO CONTRIBUTE:
The obligation to make contributions falls on the employee themselves.
However, this principle is departed from in the following circumstances:
· The self-employed employee must contribute in respect of their spouse, children and other relatives.
· General and limited partnerships must contribute in respect of their partners.
· Associated Worker Co-operatives must contribute in respect of their members.
B. COMMENCEMENT AND DURATION OF THE CONTRIBUTION OBLIGATION:
The obligation to make contributions begins on the first day of the calendar month in which the conditions required for inclusion in this Special Scheme are met by the person concerned.
This obligation continues for as long as the circumstances that gave rise to the person's inclusion in this Scheme remain in place.
The obligation ceases on the last day of the calendar month in which the relevant activity comes to an end, provided that the deregistration is notified within the prescribed timeframe and in the prescribed manner.
C. WHEN AND HOW CONTRIBUTIONS MUST BE MADE: During the voluntary payment period, contributions are paid on a monthly basis, corresponding to the calendar months of the year. The amount due must be paid within the same month to which it relates.
Settlement and payment of contributions is carried out by submitting the "Contribution Form" to the relevant collection offices. Payment may also be set up by direct debit through any of the authorised financial institutions.
D. CONTRIBUTION BASE AND RATE:
During 2001, inclusion in this scheme requires contributions based on a minimum contribution base of 118,470 pesetas per month. Contributors may choose any amount within the range between that minimum and the maximum of 415,950 pesetas per month. For those aged 50 or over, the initial contribution base is capped at 222,000 pesetas per month.
Workers covered by this scheme may change their contribution base annually, provided the request is submitted before 1 October of each year.
The contribution rate applicable to the base is set each year. For 2001, this has been set at 28.3 per cent. Workers who have opted out of temporary disability (IT) coverage will be subject to a contribution rate of 26.5 per cent.
4.- THE BENEFITS SCHEME.
The Special Scheme for Self-Employed Workers provides broadly the same coverage as the General Scheme, with a few specific features, which we outline below:
· No distinction is made between ordinary and occupational risks.
· Contributions must be up to date in order to be entitled to claim any benefit.
* RETIREMENT:
As retirement is a particularly significant benefit, and following on from last month's employment law article on retirement under the General Social Security Regime, we felt it would be useful for readers to include an overview of the retirement system that applies to workers who have been registered under the Special Scheme for Self-Employed Workers (RETA) throughout their working lives.
The retirement benefit is calculated in the same way as under the General Regime, with the specific feature that the applicable percentage of the regulatory base is determined solely on the basis of the years actually contributed.
Furthermore, under this Scheme, it is not possible to retire before the age of 65, except in very specific circumstances.
The pension is deemed to arise on the last day of the month in which the worker ceases activity, for those who are registered as active contributors, and on the last day of the month in which the application is submitted, for those with an assimilated registration status, in both cases, the financial effects take effect from the first day of the following month. For workers who are not registered as active contributors, the pension is deemed to arise on the date on which the application is submitted.
