66% did not pay taxes in May, highest default rate since 2018

66% did not pay taxes in May, highest default rate since 2018

Individual micro-entrepreneurs (MEIs) in May 2021 recorded the highest tax default rate for the government. Of the 12.4 million entrepreneurs registered in this category that month, 65.7% did not pay their DAS (Simples Nacional Document Receipt), according to data from Federal Revenue. Those who don’t pay their contributions on time forfeit Social Security benefits and can go into debt owed to the federal government and as a result, the company’s CNPJ becomes passive and there are restrictions on access to credit, for example.

The default rate increased by 6.97 percentage points compared to April and is the highest since the start of the historical series that began in January 2018. The worst result so far was recorded in April 2020, when 63,95% of small business owners did not pay. taxes for the government. In May last year, the default rate was 58.4%.

Individual micro-entrepreneurs annually bill up to R$81,000 (R$6,750 per month) and pay monthly taxes to the government ranging from R$56 to R$61, depending on the sector of activity.

Economist says health crisis is causing problems

Economist Paolo Ribeiro, Professor at FGV (Foundation Getulio Vargas), that the economic crisis caused by the covid-19 pandemic explains the increase in defaults.

According to him, the taxes collected in May correspond to the April bill, the month in which mayors and governors imposed restrictions on the movement of people in Brazilian cities.

“In April we had a peak of cases and deaths in Brazil. Mayors and governors restricted the movement of people. Most of the cases for me He is a service provider. However, they didn’t work. Naturally, the worst moment of a default coincides with the worst moment of a pandemic.”

Another problem pointed out by the economist is the scarcity of credit supply. According to him, like the government You just renewed a credit program for the past year With fewer resources available, companies once again faced financial difficulties.

An entrepreneur may lose Social Security coverage

As a result of default, the small business owner may lose Social Security coverage. In addition, an entrepreneur who remains for 12 consecutive months without making payments will lose registration and may be included in active government debt.

Debt with the government can be repaid in installments. For this, the entrepreneur must enter Business Portal access to the sectionI am already an individual entrepreneur“.

After that, the interested party should access the section “Pay monthly subscriptions“select option”installment“.

MEI that is not working may be drained

The government recommends that small business owners who are not working cancel their registration in order not to generate new debts.

For this, the interested party should access the Entrepreneurs Portal and look for the “I am an individual individual entrepreneur” section. Then he should bring the service”Few“.

If the MEI has outstanding debts, it must settle the months owed. For the issuance of pending invoices, you can access the service “Pay monthly subscriptions” also available “Já Sou Microempreendedor Individual”.

Debt will be created with the addition of penalties and interest related to the delay period. There is also the possibility of installments over outstanding debts.

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About the Author: Camelia Kirk

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