On March 31, 2020, Circular No. 897 of March 24, 2020, which provides for the suspension of the enforceability of the payment of the Severance Premium Reserve Fund (FGTS) with respect to the March, April and May 2020 taxes, was republished in the Federal Official Gazette.
The suspension is part of the measures authorized by Provisional Measure No. 927/2020 to minimize the economic impacts resulting from Covid 19.
According to the Circular, all employers, including domestic employers, will be able to suspend FGTS collection for the months of March, April and May 2020, due in April, May and June 2020, regardless of prior adherence.
The deferral of FGTS will occur as follows:
- The installment plan provides for six (6) fixed installments due on the 7th day of each month, starting in July 2020 and ending in December 2020, with no minimum amount for the installments, and the total amount is divided equally into six installments.
- To use the suspension, employers are required to declare information by the 7th of each month, through Conectividade Social and eSocial, according to the case.
- The employer that does not file a statement of information with the FGTS by the 7th of each month must do so by June 20, 2020 to avoid the imposition of fines and charges, in addition to other penalties.
- Any tax returns for March, April and May 2020 that are not filed by June 20, 2020 will be considered late and will be subject to fines and charges.
- If the installments referred to in the installment plan for March, April and May 2020 are not paid, they will be subject to a fine and charges and will result in the blocking of the FGTS Certificate of Good Standing (CRF).
- In the event of termination of the employment contract, the employer will be obliged to pay the amounts related to the months of March, April and May, as well as the other amounts due to the termination collection, without incidence of the fine and due charges, if made within the legal deadline established for its realization.
It is important to emphasize that the statements made constitute a statement and acknowledgment of the credits arising therefrom, characterize confession of debt and constitute sufficient instrument for the collection of the FGTS credit.
For further information, the Labor Team of our firm is available at [email protected]; [email protected] and [email protected]
