On January 1, the new contribution system for the self-employed, approved by the Government last July with the agreement of the main organizations, comes into force, so that self-employed workers contribute according to their real income.
The new model, which will be rolled out progressively over the next three years, establishes a system of fifteen tranches that determines the contribution bases and quotas based on the net income of the self-employed.
These net income will be calculated by deducting from the income all the expenses produced in the exercise of the activity and applying on the resulting amount a deduction for generic expenses of 7%, or 3% in the case of corporate self-employed.
The lowest tranche, for yields equal to or less than 670 euros per month, starts from a fee of 230 euros in 2023 to move to 225 euros in 2024 and 200 euros in 2025, while the highest section for yields above 6,000 euros starts from a quote of 500 euros next year, which rise to 530 the next and stand at 590 at the end of the period.
The self-employed will be able to change the net income bracket every two months through the Social Security Import@ss website.
This reform of the Special Regime for Self-Employed Workers (RETA) is designed as a preliminary step, of transition, to reach, at the latest in nine years, a definitive model of contributions for real income.
Here are some of the key dates for the new system’s startup:
- The Social Security has already put into operation a quota simulator within the Import@ss portal so that the self-employed can make quota calculations specific to their situation.
In the simulator, the worker will choose one of the 15 income brackets in which the new system is divided and will calculate the minimum and maximum quota that can be chosen depending on the selected section.
- From the beginning of the year until the end of February, self-employed workers will be able to apply to Social Security for the monthly contribution base that adjusts to the net returns they expect to obtain on average each month.
- The new base would start operating on March 1, 2023, at which time a new period will be opened to communicate changes in the contribution bracket, which will enter into force in May.
- On the first day of the months of May, July and September, three new deadlines will be opened to communicate possible changes in contribution brackets that would come into force in July, September and November, respectively.
- October 31 will be the last day to communicate activities and, where appropriate, participation in companies for the self-employed who were registered before January 1, 2023.
- On November 1, the last period of the year will open to communicate changes in the contribution base, which would take effect as early as January 2024.