INSS - Waiver of fines and reduction of interest on late payments

TAX ALERT

May 12, 2021

 

Decree No. 29/2021 of May 12th was introduced to mitigate the economic and social impact of the pandemic through the adoption of measures to alleviate the taxpayer contributory obligation, it is in this context that, under the provisions of article 56 of the Law No. 4/2007, of February 7th, the Council of Ministers decreed the granting of waiver of fines and reduction of interest on arrears of the taxpayer of the mandatory social security system.

This standard applies to all employers as well as self-employed individuals, with contributions debts, fines and interest, who are interested in joining, including those who:

  • For whatever reason, have never enrolled in the Mandatory Social Security System, and for that purpose, they must follow the registration rules provided for in the respective Regulation;
  • There are pending lawsuits for the coercive collection of debt for contributions in the Courts, Attorneys, and Private Court of Tax Foreclosure without prejudice to the criminal liability that may apply;
  • Have entered into installment payment agreements, prior to the entry into force of this Decree, for the remaining amount of the debt that was the subject of agreement;
  • For the purposes of the above, the waiver of fines and reduction of interest on arrears is only related to the remaining part and the companies and self-employed individuals who must proceed with the payment of the debt under the terms referred to in this Decree.

 

Granting modalities and Instruction of the request for waiver

The waiver of fines and reduction of late payment interest is granted on the condition that the taxpayer proceeds to pay in full the outstanding contributions that gave rise to the application of a fine and late payment interest. It should be noted that the taxpayer who makes full payment of contributions, benefits from the total forgiveness of fines and reduction of interest on arrears by 98%. On the other hand, the taxpayer can request the payment of contributions in installments and benefits from the total forgiveness of fines and reduction of interest on arrears by 75%.

To benefit from the waiver of fines and reduction of late payment interest, the taxpayer must:

Prepare and submit all missing remuneration statements and confirm the contribution debt in any Provincial, District Delegation or Representation of the National Social Security Institute; Submit, during the term of this Decree, to the Provincial, District Delegation or Representation of the National Institute of Social Security, a request addressed to the Director, requesting full payment of the contribution debt or payment in installments.

 

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