Once again tax witholdings for the self-employed are a disappointment. Recent reforms will slash the witholding from 20% in 2015 to 19% in 2016.
This means that self-employed workers as a group will take three more years to recuperate the 19% that was enforced in 2011 when the government decided to raise taxes. The measure hardly affects the tax standing for 800,000 of the nearly 2 million self-employed workers that contract with Spanish companies.
Actually, only 200,000 people who don't invoice directly to companies will benefit from the tax cut, and they have kept 15% of their earnings since July. The Finance Ministry is toying with percentages in order to make it look like it is lowering taxes through a weak reform that won't do much to recharge the economy.
