Clarifications on the impact of COVID-19 on taxation and social security
The Government has created transitional measures of physicaland social security scope that essentially go through the deferral of the payment of contributions.
Who are these measures for?
To employers in the private and social sectors with:
- Less than 50 workers;
- a total of 50-249 workers, provided that they show a drop of at least 20 % of the invoicing reported through the e-invoice in March, April and May 2020, compared to the same period of the previous year or, for those who started the activity less than 12 months ago, the average period of activity elapsed;
- A total of 250 or more workers, provided that they show a drop of at least 20% of the invoicing reported through the E-invoice in March, April and May 2020, compared to the same period of the previous year or, for those who have started the activity less than 12 months ago, to the average of the period of activity elapsed, and fall within one of the following forecasts :
- it is a particular institution of social solidarity or equivalent;
- The activity of these employers falls within the sectors closed pursuant to Decree No 2-A/2020 of 20 March, or in the aviation and tourism sectors, in relation to the establishment or undertaking actually closed;
- The activity of those employers has been suspended, by legislative or administrative determination, in relation to the establishment or undertaking actually closed.
Can self-employed workers also benefit from the measure?
Yes, self-employed workers can also benefit from the same flexibility in the payment of tax obligations in the second quarter, when they declare and demonstrate a decrease in billing of at least 20% (to be measured through the invoices reported on the e-invoice portal, and still need certification by statutory auditor or certified accountant) in the average of the three months preceding the month in which the obligation exists , compared to the same period of the previous year.
How does deferred payment for self-employed workers work?
Contributions from self-employed workers due in April, May and June 2020 may be paid as follows:
- One third of the amount of contributions is paid in the month in which it is due;
- The amount of the remaining two thirds shall be paid in equal and successive instalments:
- In July, August and September 2020; Or
- From July to December 2020.
How do you indicate what months you want to pay?
Employers and self-employed persons must indicate in Direct Social Security in July 2020 which of the payment terms they intend to use.
How does deferred payment from employers work?
Employer’s liability contributions due in March, April and May 2020 may be paid as follows:
- One third of the amount of contributions is paid in the month in which it is due;
- The amount of the remaining two thirds shall be paid in equal and successive instalments:
- In July, August and September 2020; Or
- From July to December 2020.
Workers’ contributions must be paid in the months in which they are due.
How are the requirements of the billing break demonstrated?
The requirements of the billing benefit plan are demonstrated by the employer during July 2020, together with certification of the company’s certified accountant
How do you see the billing break when the communication of invoice elements through the E-Invoice does not reflect all transactions carried out subject to VAT?
Where the communication of invoice elements through the E-Invoice does not reflect all transactions carried out subject to VAT, even if exempt, relating to the transmission of goods and services, relating to the periods covered by this scheme, the assessment of the billing break shall be carried out with reference to the turnover, with its certified accounting certification.
How do you get the number of workers?
The declaration of remuneration submitted to social security by employers in the contribution period for February 2020 will serve to assess the number of workers for the purpose of access to the benefit, but it is safeguarded that companies will be subject to inspections at any time.
Is deferred payment of contributions mandatory?
No. The deferred payment of social contributions is not mandatory, being allowed the punctual fulfillment of the contributions due by employers.
What happens if I don’t pay 1/3 of the contribution on time?
In the event that an employer or self-employed member fails to comply with the payment of a 1/3 of the amount of contributions from any of the months within the time limit, the possibility of access to this scheme ends.
What if the employer has already paid all the contributions due in March 2020?
To employers who have already paid all the contributions due in March 2020, the deferral of the payment of contributions begins in April 2020 and ends in June 2020.
Is it necessary to request deferral of payment of contributions?
Deferral of payment of contributions from the liability of the employer and self-employed persons is not subject to application. The assignment is unofficial by the Social Security services.
How can I pay 1/3 of the contribution?
As for employers, they must calculate the amount payable, which corresponds to the total amount of the contributions calculated plus 1/3 of the value of the employer’s contributions.
Self-employed persons must use the payment document available in Direct Social Security.