Are you an autonomous corporate citizen? We explain you how to claim your fee from the TGSS

Seven years after the beginning of the reduction in the self-employed quota and after many protests, the self-employed corporate workers can finally take advantage of the so-called “Flat Rate” reduction in the Social Security quota, from the beginning of their activity and claim the overcharged quotas.

What is the Flat Rate?

The flat rate is a measure to promote self-employment and consists of a bonus of the monthly fee to be paid by the self-employed:

  • 60 euros per month for the first 6 months, if quoted on the minimum basis. If you have a higher base, a reduction of 80% is applied to the minimum base and fee. During the following six months they are entitled to a 50% reduction, and in the following six months to another 30% reduction.
  • If the self-employed person is under 30 years of age at the time of discharge (or 35 years of age in the case of a woman), they are entitled to an additional 30% reduction for a further 12 months. In other words, for this group, the reductions have a total duration of 30 months.

While at first these incentives only applied to those under the age of 30, later their scope was extended to all newly created self-employed individuals, provided they were not corporate self-employed.

Let’s remember, before we go any further, that an autonomous corporate citizen is one who:

  • He holds at least 25% of the shares of a company and performs management tasks in the company.
  • He has at least 33% of the shares and works in the company itself.
  • He does not own any shares, but lives with a partner who owns at least 50% of them.

Justice has recognized the right to bonuses for the self-employed corporate

According to Social Security, the flat rate could only be applied to self-employed “natural persons”. This meant that a large number of people who were starting a business project felt cheated, as the flat rate had been widely publicized by the government.

After many complaints, the rulings issued by the Supreme Court rule that there is no reason to exclude the self-employed from the possibility of joining the Social Security flat rate, since the purpose of this bonus is to reduce unemployment through entrepreneurship and self-employment.

This change implies a change in the criteria of the Social Security, so that from now on, all self-employed workers who register with the Social Security will be able to take advantage of the right to the flat rate, and self-employed workers will be able to request a refund of the excess fees paid to the General Treasury.

And now the million dollar question, is it worth resorting to?

The amount of repayment would be approximately 4000€  plus interest in the case of self-employed corporate over 35 years, and for children under 35 years, the amount would be approximately 5000€.

Therefore, we consider it essential to claim this undue income before the TGSS.

When does the claim take effect?

The self-employed will have 4 years to claim from the collection of the first contribution as self-employed corporate, since, according to the General Law of Social Security, claims for improper income prescribe after four years.

At this point, how can you claim the bonus?

The procedure to be followed by the self-employed corporate clients interested in claiming the bonus is as follows:

1. To present the model TC.13/1 before the TGSS requesting the return of the undue payments due to the non-application of the flat rate. The Treasury will have 6 months to answer, and resolve the requested request.

2. In the event that the refund is denied, an appeal will have to be presented. Term to resolve: 3 months.

3. Finally, if the appeal is not resolved, an appeal will have to be presented through the Contentious-Administrative Court.

From OBN we offer to help you with the claim of the overpaid fees before the TGSS. Our lawyers will take care of the preparation and presentation of the document before the TGSS and the pertinent appeal in case the refund is denied.

Therefore, we recommend that you send an email to Mario Oller, our partner in charge of the Legal Department, who will study your case with his team.

Mario Oller:
Phone number: +34 934 593 600