COSIT Answer to Advance Tax Ruling Request No. 16 of March 14, 2018 – Social Security Contribution – Statutory Director

On March 23, 2018 was published in the Official Federal Gazette, the COSIT Answer to Advance Tax Ruling Request No. 16 of March 14, 2018, linked to the COSIT Answer to Advance Tax Ruling Request COSIT No. 546, dated December 19, 2017, which deals with participation in company profits paid to non-statutory director.

According to the COSIT Answer to Advance Tax Ruling Request No 16, the statutory director who does not maintain the inherent characteristics of the employment relationship is a compulsory social security insured as an individual taxpayer, and his share of the company's profits and results includes the salary of contribution, for the purpose of collecting social security contributions.

The statutory director, who maintains the characteristics inherent to the employment relationship, is a compulsory social security insured as an employee, and his participation in the profits and results of the company referred to in Law 10.101, of 2000, is not part of the contribution salary, for the purpose of collecting social security contributions

Consequently, for the purposes of determining the actual profit, although there is no possibility of deduction of the participation of statutory officers in the results of the company, it is understood that, under the terms of art. 344 of Decree No. 3.000 of 1999, is deductible from the social security contribution due by the company as a consequence of the participation in the profit attributed to the director not employed.

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