Deferral of dues for companies and the self-employed

Companies and self-employed workers may request a 6-month interest-free moratorium on the payment of social security contributions, as well as the deferral of social security debts at a reduced interest rate (0.5%).

Moratorium on payment of installments and debt deferral

RDL 11/2020, in force since 2-4-2020, establishes exceptional measures to support self-employed workers in relation to Social Security obligations. The measures adopted are as follows:

a) Moratorium on social security contributions (RDL 11/2020 art.34)

The TGSS is authorized to grant interest-free moratoriums to companies and self-employed workers affected by COVID-19 provided that they meet the requirements established by Order of the MISSM. The moratorium does not apply to CCCs for which the companies have obtained exemptions as a consequence of the procedures for suspension of contracts and reduction of working hours due to force majeure by COVID-19.

The moratoriums granted will have a duration of up to 6 months and will affect the payment of social security contributions and joint collection items for the following accrual periods:

-for companies: between April and June 2020;

-in the case of self-employed: between May and July 2020.

In any case, it is required that the activities they carry out have not been suspended on the occasion of the state of alarm (RD 463/2020).

Moratorium requests must be submitted, within the first 10 calendar days of the statutory payment deadlines, as follows:

-companies: through the RED System. They must submit an application for each CCC where there are workers for whom the moratorium is requested.

-self-employed workers: through the RED System or by the electronic means available at the SEDESS headquarters.

The granting of the moratorium will be communicated within 3 months from the date of the request. Nevertheless, in the liquidations of quotas that are practiced from the moment in which the request is presented the above mentioned communication is going to be considered realized.

Applications containing falsehoods or inaccuracies in the data provided, which give rise to the application of the moratorium, will give rise to the corresponding penalties. The undue recognition of moratoriums will give rise to the ex officio review of the act of recognition of the moratorium and to the payment of surcharges and interest.

b) Deferral of payment of Social Security debts (RDL 11/2020 art.35).

Companies and self-employed workers who do not have another deferral in force, may request a deferral in the payment of their debts with the Social Security whose regulatory deadline for payment is between April and June 2020.

Applications must be submitted before the expiration of the first ten calendar days of the regulatory deadline.

The deferral will be granted at an interest rate of 0.5%, instead of the 3.75% generally provided for (LGSS art.23.5).

In order to make it easier for companies and the self-employed to carry out formalities with the Social Security, companies and agencies are allowed to use the RED System to electronically carry out requests for moratoriums and deferrals without the need for any specific authorization for this purpose (RDL 11/2020, add. provision 16ª).