In the amendment proposal of the PS to the Labor Act that was approved yesterday, which sets a limit to the tax exemption on reimbursements for increased expenses in teleworking, the contributing part has been omitted. In other words, if the current wording is maintained, these payments are not subject to IRS, but risk paying the Single Social Tax (TSU).
Tax experts João Espanha, of the law firm Espanha & Associados, and Madalena Caldeira, a partner hired at Abreu Advogados, warn Dinheiro Vivo about the flaw in the text of the socialist proposal. “Someone has forgotten the part of social security, that is, if the change remains as it is, it is certain that the payment of telecommuting costs, even if the limits of the tax exemption are respected, will be subject to reductions for the social certainty,” said John Spain. And he added: “Companies will have to pay 23.75% of that amount and employees 11%”. Madalena Caldeira explains that, for example, “in the case of per diems and meal subsidies, caps were set for the IRS exemption that were later incorporated into the dues code, to respect those limits within the scope of the TSU.”
Faced with this possible lapse, PS deputy Fernando José guaranteed that the intention is that “the exemption will be applied tax-free and premium-free”. “If there is a need for legislative harmonization and adjustments, the PS will not shy away from implementing it,” he stressed. The IRS exemption ceiling, proposed by the PS and approved yesterday, stipulates that “the compensation is considered for tax purposes as an expense to the employer and does not constitute income to the employee up to the limit of the value determined by the ordinance of the members of the government responsible for the areas of Taxation and Social Security”.
The PS has considered that this limit can apply to both fixed and variable costs, upon presentation of the invoice. However, Madalena Caldeira completely rejected such an interpretation and went to the Tax Office: “If there is an invoice, there is room for reimbursement and it will not be taxed, as it is today”. The maximum exemption ceilings only make sense if there is no evidence.”
salary credits
This Friday will be voted on and approved on the PS proposal that prohibits the waiving of wage credits when leaving the company, except in court agreements.
Final vote on the 10th
Voting on the specialty of amendments to the Labor Code ends this Friday and the final global vote is scheduled for April 10. Despite the one-week delay, the PS still believes the new law can take effect on April 3.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
