Spain: Congress validates flat rate for Social Security contributions
RTV.es, 13 marzo 2014
Despite the rejection of the majority of opposition parties, the Congress of Deputies of Spain approved, on 13 March 2014, a flat rate for contributions concerning common Social Security contingencies, with which the Government intends to encourage permanent employment. The Minister for Employment and Social Security said that the Government Decree will have no impact on public finances, since the loss of revenue – as a result of the application of that rate to contracts that were to be carried out regardless of the implementation of this measure – will be offset by the social security contributions arising from employment generated by this incentive. The minister also pointed out that this incentive will result in increased revenue from the personal income tax, the corporate income tax and indirect taxes such as the VAT, while facilitating savings in such social benefits as unemployment.
Read the article (in Spanish).