The zero rate for the Self-employed in Madrid in 2023 is in force since January 1st. This applies to the new Self-Employed who develop a self-employed activity in the Community of Madrid, who will be able to benefit from the so-called Zero Rate. The Community of Madrid will pay this contribution to all workers who start a business during the first twelve months after its start-up.
And it will be extended for another twelve months to those who have an annual income equal to or lower than the minimum interprofessional wage (SMI). But also to those who have a disability of 33%, or are victims of gender violence or terrorism.
It will also apply to self-employed women who are entitled to a reduced contribution because they have ceased their activity due to birth or adoption and resume it within the two years immediately following.
It is estimated that this new measure could benefit around 30,000 self-employed workers, and around 15 million Euros will be allocated.
Beneficiaries of the zero rate for the Self-employed in Madrid in 2023
The measure establishes that the full cost of the fees will be defrayed during the first twelve months, in the following cases.
In the first place, self-employed persons who avail themselves of the “Reduced Rate” in the new regulations applicable to self-employed contributions. The first twelve months for not having been registered in the previous two years.
Secondly, self-employed workers who are covered by the “Reduced Rate” in the new regulations applicable to self-employed workers’ contributions. Twelve months after the first year of registration for earning less than the minimum wage.
In addition, self-employed workers who have a degree of disability equal to or greater than 33.%. Are victims of gender violence or victims of terrorism. In all of them, who have had the reduced quota recognized for 24 full months.
Also in the previous case, those who, as a consequence of their net annual income, have enjoyed the reduced quota during the following 36 complete calendar months after the initial 24 months of registration.
Self-employed or self-employed workers who, having ceased their activity due to the birth of a child, adoption, guardianship for adoption purposes, foster care and guardianship, return to self-employment within the two years immediately following the effective date of the cessation. And who have had the state bonus recognized during the 24 months immediately following their return to work.
Lastly, self-employed workers who are beneficiaries of a childcare benefit for minors affected by cancer or another serious illness. They must have received the state subsidy during the period of receipt of said benefit.
Requirements
The main requirement to be eligible for the Zero Rate is to be a beneficiary of the State Reduced Rate. In other words, new self-employed workers who register in the RETA from January 2023 and who wish to apply for the Zero Rate, must first apply for the Reduced Rate because they have not been in the regime for the two years prior to registration.
The application period must be submitted within a maximum of three months following the end of each twelve-month period of enjoyment of the reduction or rebate in question.
We understand that the criteria and documentation will be similar to those of the current “Prolongation of the Flat Rate”. Having to be delivered telematically the application of the file, sending together with the application:
- Document accrediting the Registration in Reta.
- Registration in the Tax of Economic Activities (models 036 or 037).
- Paid receipts of self-employed.
- Plan of Prevention of Labor Risks (in case of having obligation of the same one).
On the part of the administration, it will consult the identification data, of labor life and of being up to date of payments before the Tributary Agency and the Social Security.
