Rules regarding the special regime for debt payment to the Social Security in instalments enter into
Labor and Employment Law Alert Portugal
The State Budget Law for 2021 created a special regime for payment of debts to Social Security in instalments applicable to debts that are not under an enforcement procedure.
Today Ordinance 80/2021, March 7th was published in the Portuguese Official Gazette, regulating the legal conditions and the applicable procedure for this regime.
1. Social Securtity debts covered
This special regime is applicable to debts to Social Security regarding companies’ contributions (as employers or contracting entities) and self-employed workers contributions, to be paid until December 31, 2021.
This regime is not applicable to Social Security debts under insolvency or recovery procedures, special procedure for achieving a payment agreement, extraordinary procedure for company viability, extrajudicial corporate restructuring procedure or agreements for the acquisition of share capital of a company by their personal or employees with the purpose of its revitalization and modernization.
2. Payment in instalments and debt regularization
The debt payment can be authorized to be done in up to 6 monthly instalments.
However, an extended payment period of up to 12 months can be authorized if the debt exceeds:
- € 3,060.00, for natural persons;
- € 15,300.00, for legal persons.
Each instalment shall be paid until the last day of each month.
The debt will be reduced according to its maturing age, starting with the amount related to employee’s contributions debt, followed by the employer’s contribution debt and interests.
In all other matters, the rules set forth in Decree-Law 213/2012, September 25th are applicable.
After paying the first instalment and whilst the agreement is being complied with, the taxpayer’s status regarding Social Security debts is considered regular.
3. Procedure
To access this regime, interested parties must apply to it via Social Security online services, and no type of collateral has to be provided.
Social Security has 30 days to decide on the application. If it does not decide within that timeframe, the application is considered to be tacitly approved.
The existence of other debts to Social Security under enforced payment procedures, judicial or out-of-court conciliation, do not unable the application to this special regime regarding other Social Security debts.
The 12 months limit for executing agreements to settle Social Security debts is not applicable to this regime.
4. Entry into
These rules enter into force from April 8, 2021, onwards.
Contacts
