Self-employed workers consider that the Government should already propose an extension of the measures to support companies and workers that goes beyond 2020. The rising curve of contagions and the growing number of localities that decree extraordinary measures lead to the main association in the sector ATA to demand a new round of emergency measures to save the self-employed, companies and jobs, which involves extending ERTEs , ICO lines , tax deferrals and the ordinary activity cessation compatible with the activity as of April 1, 2021 , as well as deductions for the self-employed in personal income tax and reduce VAT to 50%tourism, hospitality, hairdressers and gyms.

Negotiations at the social dialogue table to extend the ERTE beyond their current expiration date, September 30 , have entered a phase of less activity in August, although they are not paralyzed. The news is followed by the tripartite commission created last June and, in principle, talks are expected to resume at the end of August to give shape to the second extension of the aid schemes. This second extension would be oriented, according to sources of social dialogue, to specify the support on specific economic sectors such as tourism . In fact, the new round of negotiations will open in Palma de Mallorca.

The president of ATA, Lorenzo Amor has stressed that it is "urgent" to establish an emergency plan, with a view to a "very hard" autumn and winter, which extends existing aid until April 1, 2021, facilitates liquidity and boost consumption and demand to cushion the decline in activity and the closure of companies and the self-employed

According to Amor, if the first wave of the pandemic resulted in a million fewer jobs, than the 135,000 were under the umbrella of the self-employed, the second wave "without a doubt" will lead many self-employed to the closure of those who are employers to having to reduce staff.

On June 26, the Government agreed with social agents and self-employed organizations to extend the aid to the self-employed and ERTE until next September 30 and the more than 1.5 million self-employed benefited from the extraordinary benefit for cessation of activity obtained automatically exemption of 100% of the Social Security fee in July, 50% in August and 25% in September.

The biggest problem faced by the extension of the ERTE is its economic cost for the State and specifically the ministries of Labor and Social Security , in charge of financing aid, subsidies and exemptions for workers with suspended or unemployed employment and companies and freelancers who see how their activities have collapsed.

Within the Government there is no discussion about the advisability of prolonging the aid, although there is debate about the conditions under which they should be granted and also about whether it is convenient to maintain financial support for companies that are not going to recover. The approach would shift from an active aid scheme like the current one to passive aid in which companies and workers with little chance of surviving the crisis would be dropped. The aid would then focus on supporting the reconversion of companies and unemployed workers.

Amor, represented by CEOE in negotiations with the Government, advocates extending the ICO liquidity lines until April 1, 2021 and extending the grace period up to 24 months, together with a temporary VAT reduction of up to 50% of the rate in hospitality, tourism, culture, hairdressing and gyms

In addition to the extension of the tax deferrals, it requests a tax deduction to the self-employed in personal income tax and companies in corporate taxes that have maintained the level of employment in 2020, in parallel to an extension of the module limits until 2022 and maintain the temporary possibility of waiving modules during 2021.

Finally, it urges the creation of a network of business mentors for bankruptcy prevention and the reorientation of freelance businesses by digitizing and training the freelance in said environment.

According to the criteria of The Trust Project

Know more

  • Personal income tax
  • Social Security
  • CEOE
  • Palma de Mallorca
  • economy
  • Taxes
  • Self-employed

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