Estimating the Social Security Contribution

When the taxable base has been calculated, the system subtracts the employee's annual social security contribution if the employee is associated with the state territory.

Note:

For employees associated with one of the historical territories, the social security contribution is not used in the IRPF calculation.

The system estimates social security contributions as two segments: the actual social security contributions year-to-date and the estimated value for the rest of the year. The amount remaining after subtracting the annual social security contribution from the estimated tax base is the Rendimiento neto del trabajo (RNT). To calculate RNT, the system uses the social security contribution accumulator (TAX AC SS CT A) for the actual year-to-date contribution and estimates future contributions. These calculations are made in the formula TAX FM CT SS EST. After the system deducts social security contributions, it applies a second reduction for irregular income to determine RNT.

RNT is subject to deductions for salary level, disability, personal minimum deductions, family minimum deductions (dependents), alimony, and irregular income.