Brazilian Government extends payment period for PIS / Pasep and Cofins

The Brazilian government extended the deadline for the payment of the social security contribution and the Contribution to the Social Integration and Formation Program for the Civil Servants’ Property (PIS / Pasep) and the Contribution for the Financing of Social Security (Cofins). The decision was made due to the economic crisis generated by the covid-19 pandemic.

 

What are the new deadlines?

The payment of social security contributions due by companies and the contribution paid by domestic employers, related to of May of this year, must be paid within the maturity of the contributions due in October 2020. The same period was established for the payment of PIS / Pasep and Cofins. Contributions related to the May this year would expire this month. According to the RFB, if taxpayers make payments by the new deadline (October, due in November), there will be no interest or late payment penalty. The total value of the funds with deferred maturity is in the order of R $ 40 billion.

 

Previous extension

The deadline for payment of these social contributions, which occurred in April and May 2020, had already been postponed to August and October 2020, respectively. The measure is provided for in Ordinance No. 139, of April 3, 2020.

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!