As per January, 1st 2019 the rules for the determination of the contribution to the Segurança Social will change. This is applicable only for the “Trabalhadores Independente” en/of “ Empresários em nome individual”, for sole companies, independent workers for subjected to IRS legislation. In the meantime, a lot of independent workers already have received an e-mail from the social security about those changes. This news item is about the upcoming changes which now have been communicated. The next months there will follow more communication due to reporting more details from the social security and we will try to inform you accordingly.
What are in general sense the changes per 01/01/2019?
The biggest change is, in my opinion, a more fair way to calculate the contribution of the independent worker. The monthly contribution will be calculated about the income per quarter and not based upon the income of the last year.
All exemptions will be cancelled.
Beside that the percentage of contribution will be lowered to 21,4%.
How will be the contribution determined?
Every quarter the independent worker has to submit the realized income of that period. This declaration has to be submitted electronically through the site Segurança Social Direta*. More details are not known yet.
* = Segurança Social Direta: please arrange access to this site. www.seg-social.pt
All exemptions will be cancelled?
In some situations, the independent worker could benefit an exemption of contribution to the Social Security. Known so far and communicated by the respective service, the exemption of independent worker who have also a labor contract, and receive a salary from their employer, this exemption will be cancelled and replaced with new conditions. The worker can´t benefit anymore of the exemption if the income as independent worker is more than 1.715,60 euro (=4x IAS 428,90 euro) per calendar quarter, and if the monthly contribution as dependent worker is more than 428,90 euro.
So far, the known changes. To be continued…..