Self-employed workers who have the need to stay at home with children up to 12 years of age, due to the suspension of face-to-face school activities, whose possibility of teleworking is non-existent, are entitled to exceptional family support. This support corresponds to 1/3 of the monthly contribution base, with reference to the first quarter of 2020, with a minimum of 1x IAS and a maximum of 2.5x IAS.
This support is automatically granted upon application by the self-employed worker, unless teleworking measures are applied.
If a worker is temporarily unable to work because of contagion risk from COVID-19, he or she will be entitled to payment of an allowance equivalent to sickness, the value of which will be 100% of the reference wage, for as long as he or she remains isolated. For this, he must have a declaration of isolation issued by the Health Authority.
If a worker contracts the illness, he will be entitled to receive an allowance from the Social Security by presenting a certificate of temporary incapacity for work (sick leave).
The amount of this benefit may be as follows:
– Up to 30 days – 55% of the reference salary;
– 31 to 90 days – 60% of the reference remuneration;
– 91 to 365 days – 70% of the reference remuneration;
– More than 365 days – 75% of the reference remuneration;
Workers who need to be absent from work to care for their child or grandchild (who is in isolation or ill) will be entitled to receive a social security allowance, which must be applied for through Direct Social Security. The amounts set for this benefit are:
Extraordinary measures to maintain employment contracts in a business crisis – Lay-Off (Ordinance No 71 – A/2020 of 15 March)
- A company is considered to be in a business crisis when
- There is a complete stoppage of activity of the company or establishment resulting from the intermittence or interruption of global supply chains or the suspension or cancellation of orders;
- There is an abrupt and sharp drop of at least 40% in relation to the 60 days preceding the application to Social Security for the homologous period of the previous year (or the average period of activity if started less than 12 months ago).
- Means of proof in case of Lay-Off:
- Declaration of the employer and Certificate of the certified accountant of the company;
- Other documents may be requested in the case of monitoring, such as balance sheets for the support month and the same month, VAT returns for the support month and the two previous months in the case of monthly VAT, or VAT returns for the fourth quarter of 2019 and the first quarter of 2020 in the case of quarterly VAT, among others.
- The prerequisite for access to the measures is that the taxpaying situation be regularised with the Tax Authorities and the Social Security.
Procedures to be adopted to benefit from the measures:
- The employer must inform the workers in writing that he will apply for support, and afterwards there must be a hearing of the trade union representatives and the workers’ committee (if applicable);
- O empregador deverá indicar o prazo previsível que pretende usufruir da medida:
- This initially stipulated period may be extended on a monthly basis, exceptionally, up to a maximum of six months;
- Only in cases where workers have taken the whole holiday period and the company has adopted the hourly flexibility scheme.
- The application for the measure should be sent to the ISS, together with the Declaration of the employer and the Certificate of the Certified Accountant, as well as the nominative list of the employees covered (with the respective NISS).
- This “simplified Lay Off” scheme does not imply the suspension of employment contracts.
- During the period of support, workers are entitled to 2/3 of the gross monthly salary, with a minimum limit of the National Minimum Wage (635.00 Euros) and a maximum limit of 3 times the National Minimum Wage (1905.00 Euros).
- This amount is 30% borne by the employer and the remaining 70% is the responsibility of Social Security (through the employer who will bear the 2/3 of the salary and a posteriori will be reimbursed).
- Companies benefiting from the extraordinary support for maintaining jobs (Lay Off) are also entitled to total exemption from Social Security contributions, as far as the employer is concerned (23.75%), and must submit and comply (with the submission of autonomous remuneration statements relating to the workers covered) with the payment of contributions relating to the workers (11%).
- The exemption from social security contributions also applies to the self-employed, but the exemption from payment will have to be recognised ex officio on the basis of the information provided by the EPI.
- Having benefited from the above-mentioned support measure, the company may also benefit from an extraordinary financial incentive to support the resumption of the company’s activity, corresponding to 635.00 Euros (National Minimum Wage) per worker.
- Failure by the employer to comply with the obligations relating to the aid granted implies its termination and the obligation to restore values:
- Dismissal, unless attributable to the employee;
- Occasional failure to comply with the wages owed to workers;
- Failure to comply with legal, tax or contributory obligations;
- Distribution of profits, or withdrawals on account during the period of support;
- Failure to comply with the obligations assumed;
- Making false declarations.
Any requirements and clarifications can be made electronically through the e-balcon on the Tax authorities website.
Taxpayers should favour payments through electronic means such as ATM, Homebanking and MBWay.
Payment for the DMR is suspended until further notice.
So far, no postponement of VAT payment (to February 2020 and/or the first quarter of 2020) or submission of periodic declarations has been established.
The payment obligations for the second quarter (April, May and June), as well as for businesses and the self-employed, will be able to make VAT payments in instalments, this measure being applicable on a monthly and quarterly basis.
IRS/ DMR/ SAF-T deductions
The payment of withholding taxes for February 2020 has so far not had any extension of the deadline, such as the date set for the DMR and the SAF-T. Therefore, until further notice, the legally established deadlines for these obligations are maintained.
The General Meetings of all commercial companies, associations and cooperatives can be held until 30 June 2020. The deadline for reporting, established by the delivery of the IES, is 15 July 2020.
The deadline for the submission of the Single Report for the 2019 period, which began on 16 March 2020, may have been extended. However, the new deadline is not yet known. When it is established it will be communicated by the Ministry of Labour, Solidarity and Social Security.
Payment on Account
The first payment on account is now due on 31 August 2020 for taxable persons with a tax period equal to the calendar year.
Special Payment on Account
The Special Advance Payment has been extended to 30 June 2020 and applies only to taxable persons whose tax period coincides with the calendar year.
The deadline for submitting the Model 22 declaration and the respective IRC payment has been extended to 31 July 2020, also applicable to taxpayers with a tax period equal to the calendar year.A company may have the payment of social security contributions suspended, at its expense, in certain circumstances, such as: employers who fit into simplified lay-off situations, simplified lay-off with training or, who benefit from extraordinary financial incentives, in the months.
So far, 2 lines of credit have been created for micro, small and medium-sized enterprises:
Capitalize Credit Line – “Covid -19 – Working Capital” and Capitalize Credit Line – “Covid – 19 – Cash Plafond”, available as of 12 March 2020, with an amount of 200 million Euros, with the following conditions:
– Maximum Plafond of 1.5 million Euros per company
– Up to 80% guarantee, with 100% counter guarantee
– Total bonus for the guarantee commission
The measures taken in this respect were as follows:
– Approval of the acceleration of incentive payments, which should be settled as soon as possible after the application is submitted by the affected companies (up to 30 days) and, exceptionally, may be made as an advance.
– Extended by 12 months the amortization period of reimbursable subsidies from the NSRF and the PT2020, which would end on 30 September 2020.
– Guaranteed deductibility of expenses incurred with international events, whose cancellation reason is COVID-19, provided that these expenses are borne by the beneficiaries under projects approved by WP2020.
– Guarantee of evaluation of the impact of the pandemic, after its end, on the achievement of the objectives set under the NSRF and WP2020 systems.
The Government will support the training of all non-occupied workers in productive activities for considerable periods of time, when they are linked to companies whose activity has been affected by COVID-19. The support may reach 50% of the worker’s remuneration up to the limit of the RMMG, plus the cost of training, assumed by the IEFP.
Support for the payment of wages
Government support for the payment of salaries is foreseen in the restart phase after a possible closure by the Health Authority or at the end of the lay-off period
The Government will support the payment of salaries in the phase of resumption of activity after closure by the Health Authority or the end of the lay-off period. This support will be supported by the IEFP, will have the foreseen duration of 1 month and totals, per worker, the value of the RMMG.