DEFERRAL OF SOCIAL SECURITY CONTRIBUTIONS DUE TO THE HEALTH CRISIS

Portugal, like the rest of Europe and the rest of the world, is going through an unprecedented health crisis. a number of reformsincluding the deferral of social security contributions, to help businesses in Portugal survive the crisis.

Before getting to the heart of the matter, it's worth remembering that some regions, such as the concerto by Ovar are placed in solitary confinement until April 6, temporary borders were installed preventing people from entering or leaving. Worse still, Ovar City Council has ordered the closure of non-essential businesses.

Deferral of social security contributions in Portugal

The government has implemented dozens of reforms to enable companies in Portugal to survive and meet their obligations as employers or to their suppliers. One of the most significant of these reforms is the deferral of social security contributions in Portugal.

Who can benefit from the deferral of social security contributions

• Self-employed workers
• Companies with up to 50 employees
• Companies with between 50 and 250 employees, experiencing a drop of at least 20 % in their sales activity during March and April.
• Companies in the tourism, civil aviation or business sectors that have been forced to close in accordance with decree 2-A/2020 art 7.

How deferred social security contributions work

For freelancers : social security contributions due on April 20, May 20 and June 20

For companies : social security contributions due on March 20, April 20 and May 20

1/3 of the contribution is due each month, 2/3 will be carried forward to the second quarter.

Payment of social security contributions breaks down as follows: you can choose whether to pay within 3 months or 6 months.

If you choose to pay 2/3 over 3 months, i.e. July, August and September of this year, no late payment interest will be charged.

If you choose to pay 2/3 over 6 months, from July to December, late payment interest will be charged.

Beware of penalties if fraud is detected

Beware of the smart guy who wants to "illegally" benefit from the deferral of social security contributions in Portugal: if the fraud is proven, you'll have to pay the entire debt, plus interest at the full rate.