Pension waivers will take R$ 54 billion from INSS coffers in 2019.
While aiming to tighten retirement and pension rules, the government anticipates a revenue loss of R$ 54,56 billion due to social security exemptions this year; last year, the majority of these social security exemptions (R$ 25,8 billion) came from companies under the Simples Nacional tax regime.
247 While aiming to tighten retirement and pension rules, the government anticipates a revenue loss of R$ 54,56 billion due to social security exemptions this year. According to the Secretary of Social Security at the Ministry of Economy, Leonardo Rolim, these exemptions must be analyzed based on the return they bring to society.
"If the Simples program didn't exist, would those companies be contributing to Social Security or evading taxes?", he points out. He says, however, that there are situations in the law that are not "economically justifiable". The solution would be to reconsider the legislation, the leader suggested. His account was published by newspaper The State of S.Paulo.
Last year, the majority of social security tax waivers (R$ 25,8 billion) came from companies under the Simples Nacional tax regime, which accounted for the largest share of these waivers. Companies classified as Individual Microentrepreneurs (MEI) accounted for another R$ 2,2 billion. Both categories pay a reduced tax burden. Philanthropic entities benefited from R$ 11,1 billion in social security tax exemptions in 2018.