In recent months, the General Treasury of the Social Security (TGSS) has been sending notifications to individuals contributing under the self-employed regime regarding the contributions paid during 2024. With the system of contributions based on net income that was implemented in 2023, the TGSS regularizes self-employed contributions retrospectively.
The result of this regularization may result in an amount payable if contributions during the year were below the minimum amount of the applicable contribution bracket, or a refund, where contributions exceeded the upper amount of the applicable bracket based on the income reported in the Personal Income Tax (IRPF) return.
In the case of a refund, the TGSS will process it automatically to the designated bank account before April 30th, and in the case of an amount payable, it must be made following the instructions contained in the notification.
With regard to the implications for the Personal Income Tax return (IRPF), an important issue to consider is the tax period in which this adjustment must be declared and whether the additional payment / refund of contributions entails modifying returns from previous years (in this case, 2024).
The Directorate-General for Taxes (DGT), in several recent rulings such as V0876-25, has indicated that the contributions paid during the year (2024) are not considered provisional or incorrect, but rather contributions due under the provisional system and, therefore, it is not necessary to file an amended or corrective IRPF return for that tax year.
Specifically, when self-employed contributions have the nature of a deductible expense, both in income from economic activities under the direct assessment method and in employment income, the procedure is as follows:
- If the result is payable: the additional amount is reflected as a higher deductible expense for Social Security contributions in the tax year in which the payment is made (2026).
- If the result is refundable: the refund is reflected as a reduction of the deductible expense for Social Security contributions in the tax year in which the refund is received.
At PLANA VENTURA GARCÉS we are available to review each case and ensure its correct allocation in the tax return of the corresponding year, as well as any other matter that may concern the upcoming Personal Income Tax filing campaign.
