The Council of Ministers - by means of Decree No. 22/2020, of 23 April - granted a pardon of fines and reduction of late payment interest (in Portuguese, juros de mora) arising from mandatory contributions to the social security.
It should be noted that only companies can enjoy this pardon. Hence, it is not extended to individuals.
In addition, to enjoy the pardon, companies must pay the entire amount – though in installments – of the social security contributions which gave rise to the application of such fines and late payment interests.
The regime can be described as follows:
• Payment of the entire amount of contributions (no installments) – 100% pardon of fines and 98% of reduction in late payment interest;
• Payment of the entire amount of contributions (installments until 31 December 2020) – 100% pardon of fines and 75% of reduction in late payment interest.
As for the procedure, the taxpayer shall:
• Prepare and submit all the outstanding remuneration declarations and confirm the debt amount at any delegation (provincial or district) of the INSS;
• Submit an application, within 90 days as from the 23 April 2020, at a delegation (provincial or district) of INSS addressed to the General-Director requesting the payment of the full payment of the debt or the payment in installments.
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