Due to the distressing economic situation and the lack of support from the national government and public institutions, many freelancers and SMEs are faced with the dilemma of working in the dark or disappearing. Many times it is the unbearable tax burden and Social Security contributions that lead to the disappearance of self-employed workers.
On the other hand, many SMEs have to choose between ending up in a Creditors' Contest or continuing to develop their activity violating the laws and joining the ranks of the submerged economy. Despite wanting to respect the law, many end up opting for money and B accounting in order to simply survive.
It must be taken into account that in our country SMEs account for 98% of the productive fabric and 80% of employment that exists in Spain. On the other hand, it is those small and medium-sized companies and the self-employed who are suffering the most from the political, institutional and economic crisis that is leading our country to third-world standards.
All reliable information estimates that the 20% of business activity is forced to work in the underground economy. To this must be added that the tax system is particularly suitable for small and medium-sized companies and the self-employed, leaving large companies and large fortunes, through financial engineering, to pay much less than they should.
There are many financial advisers who are certain that the Spanish tax system became obsolete many years ago Therefore, they hope that the current government, headed by Minister Montoro, will reform it and make it work so that finally those who have the most pay more and not as it currently happens that taxation is focused on the middle classes and the SMEs.
More information: The month of April the best for the affiliation of freelancers.
Source: Periodista Digital | Image: epSos