Servicontabil - Novidades Legislativas

Legislative News - 14 April 2020

April 16, 2020

In the last few days there have been a high rate of publication of laws to regulate the support provided for individuals and companies. At this rate the laws have been announced firsthand by the government through the media. Usually from the time they are announced until they are published and take effect, it takes an average of 2 days. Only after this official publication do the services issue clarifications on how to operationalize the law while adapting the platforms to receive the requirements / forms. With all this it is a week of anxiety for those who are waiting for the benefit and a lot of work on the part of the accountants in the interpretation of the laws, circulars, orders etc..

In this way, we present you with the latest legislative news on extraordinary support for reducing the economic activity of the self-employed:

- Improvement of support in financial terms with the definition of 2 income steps whose separation value is 658.22€;

– Expansion of reasons for stopping or reducing activity by more than 40%;

– Inclusion of managing partners without employees and with a turnover in the previous year below 60,000€.

– Indexing of the base value of the support to the break in billing.

As the recovery of the economy can be long and take more than a year to return to pre-crisis time, there is the possibility of resorting to bank financing within the scope of Covid19 that most banks have available to companies

The crisis will be as much harder as it is longer. It is necessary to reflect how will the recovery to the correct taking of decisions. It is also clear that the government will take further support measures if the crisis continues. However, it is necessary to decide well, and now.

Extraordinary Financial Support to the Decline in Economic Activity of Self-Employed

Who Can Access:

- Workers covered exclusively by the self-employed regime

- Partner-managers of companies, as well as members of statutory bodies of foundations, associations or cooperatives with functions equivalent to those.

Access Conditions:

- Not being pensioners.

- Subject to compliance with the contributory obligation for at least 3 consecutive months or 6 months interpolated has, for at least 12 months.

- Not having workers on the board.

- The companies of the partner-managers have been billed through “e-fatura” less than € 60,000 in the previous year.

Access Reasons:

- In a proven situation of complete stoppage of your activity or the activity of the respective sector,

- In a situation of abrupt and sharp breakdown of at least 40% of the billing in the period of the previous thirty days, with reference to one of the following situations as appropriate:

– the monthly average of the two months preceding that period or,

- Compared to the same period of the previous year or,

– For those who started the activity less than 12 months ago, the average of that period.

Financial Support:

This support is granted according to the contributory base on which social security was charged and whose value can be classified in the following categories:

a) If the amount registered as the Contribution Tax Base (BIC) is below 658.22 then the amount receivable will be equal to that BIC up to a maximum of € 438.81.

b) If the amount registered as a contributory tax base (BIC) is equal to or above 658.22 then the amount receivable will be equal to two thirds of that BIC, with the maximum limit of € 635.

In the reason for the break in billing, the amount determined is multiplied by the percentage of the break in billing. In other words, the amount of support varies according to the break in billing, with the minimum / maximum limit (438.81X40% = 175.52) and (635.00X40% = 254.00), respectively. Only with 100% breaks it receives all the support.

Support Duration:

Financial support lasts for one month, extendable monthly, up to a maximum of six months.

Support Payment Term:

Financial support is paid from the month following the submission of the application.

Constraints:

- The self-employed worker maintains the obligation of the quarterly declaration when subjected to this obligation.

- The support provided cannot be combined with social protection support for illness and family assistance.

- Does not confer the right to exemption from the payment of Social Security contributions.

- However, they are entitled to defer payment of contributions due in the months in which financial support is being paid. The payment of the accumulated value of these contributions must be made from the second month after the end of the support and can be made within a maximum period of 12 months, in monthly and equal installments.

- The breach of the declared billing is subject to subsequent verification by the social security, within one year from the granting of the support, based on information requested from the “Autoridade Tributária e Aduaneira”, giving rise to the eventual refund of the amounts unduly received.

Comment:

The indexation of the break in billing to the amount of support is the 5th and most recent amendment to the law that regulates this support for self-employed workers. Without discussing the justice of this change, it is certain that there will be a cut for those who are not completely stopped / closed. On the other hand, it is important to ask for support. In other words, it should be requested when the break in the billing stabilizes, otherwise it will continue to accentuate in the rush of asking when the 40% falls. For example, the activity has been registering losses day by day exceeding 40% and reaching 60% in 15 days. The decision to wait can result in more support to receive, in this example 20% more (from 40% to 60%).