Many workers decide to stop being self-employed and will need to deregister from the Treasury and Social Security at some point, either permanently, temporarily, or if they already want to retire. Although it is not a mandatory procedure, it is recommended to process the withdrawal as soon as possible to avoid inconveniences regarding the Spanish Public Administration.
That is why the PAE, through the CIRCE system, enabled the possibility of processing the deregistration from Social Security and the Tax Agency at the same time online. Although, you will previously need to have gone to an Entrepreneur Service Point (PAE) to fill out and send the Single Electronic Document (DUE).
How can it be done? Keep reading to find out! And if you have any other questions, you can contact Entre Trámites and we will solve them for you. Schedule a free consultation!
How do I deregister at the same time in the Treasury and Social Security?
By sending the DUE online, the system begins the process by transferring to each organization the documents that correspond to each one for this cancellation. In the first place, the General Treasury of Social Security (TGSS) will communicate the cessation of activity and will generate the deregistration of the self-employed worker in their contributions account and in the Special Regime for Self-Employed Workers (RETA).
Secondly, the Town Halls that collaborate with the CIRCE or adhere to the “Emprende en 3” program will request to cease the worker’s activity. Consequently, the DUE will request their removal from the Census of Entrepreneurs, Professionals and Retainers before the Tax Agency.
It is worth noting that through the CIRCE it is not possible to process terminations of work contracts online, nor the communication of the closure of the Work Center, in case of having hired staff.
Nor can you deregister from the personal files at the Spanish Agency for Data Protection online.
Fill in the DUE
To process the DUE and stop being self-employed, it is necessary to provide the original DNI of the self-employed worker and a photocopy and, if applicable, of their employees too. Also, the original Social Security card and a copy or any other document that proves the affiliation number are needed.
And if the self-employed worker is married, they must also present the DNI of the spouse and declare the marital status in which they are; likewise, they will be asked for the company’s address data, the Social Security contribution account number, and if the self-employed worker is a foreigner they must provide their NIE and the residence and work permit as self-employed.
Deregistering: as important as registering
When a self-employed worker registers, they become visible to the Treasury and Social Security at the same time. It is an obligatory procedure for you to undertake your own professional activities legally.
And what activities are these? Taxing the Treasury (or “Hacienda”) is one of the first and most important ones, to be able to declare some type of tax such as IVA or Personal Income Tax (IRPF) and be up to date with tax withholdings. The Tax Agency is aware of these operations and they are only possible if the self-employed worker is registered in at least one heading of the IAE (Economic Activities Tax).
It is similar to Social Security: registration in the Special Regime for Self-Employed Workers (RETA) is demanded and a monthly fee must be paid so that the self-employed worker can access various coverages such as common contingencies, unemployment, or professional training.
What happens when a self-employed worker is not registered?
If a self-employed worker is not contributing to Social Security or declaring taxes to the Tax Agency, it means that they cannot work, issue or receive invoices and enjoy social protection.
Solve all your doubts!
We hope this information has been handy for you to carry out your bureaucratic processes! Remember that you can get the most out of your activity and be up to date with your registration or deregistration in the Treasury and Social Security if you go hand in hand with our professional team of Entre Trámites.
If you want to receive professional advice in the management of your bureaucratic procedures, including doing your taxes or modifying your data in Social Security, we invite you to fill in our contact form, schedule your online consultation, or simply text our WhatsApp.
