sensei
26/04/2021
OUTSOURCING AMENDMENT
On April 23, 2021, a Decree was published in the Federal Official Gazette amending several legal provisions regarding the outsourcing.
The main points of the amendment are the followings:
– Outsourcing of personnel is banned, which means that you may not provide or make available your own employees for the benefit of another person.
– The outsourcing of services and specialized works other than the corporate purpose and the main economic activity of the beneficiary is allowed.
– Complementary or shared services or works provided between companies of the same business group are allowed as long as they do not form part of the corporate purpose or the predominant economic activity of the company that receives them.
– Companies that provide specialized services or perform specialized works are required to register before the Ministry of Labor and Social Welfare. This Ministry has 30 calendar days from the entry into force of this -Decree to issue the provisions regarding the procedure to obtain such registration.
– The outsourcing of specialized services or works must be recorded in a written contract and there will be a joint and several liability in labor, social security, tax and criminal matters of the contracting party and the contractor, so the first one must continuously verify that the second one fulfills all its obligations.
– The amount of employee profit sharing will have a maximum limit of three months of the employee’s salary or the average of the profit sharing received in the last three years, whichever is more favorable to the employee.
– Penalties are imposed, such as fines on those who do not allow inspection by the authorities and/or those who outsource or benefit from outsourcing without registration, as well as the non-deductibility of taxes and even criminal liability.
The amendment entered into force the day after its publication; however, the amended provisions of the Federal Tax Code, the Income Tax Law and the Value Added Tax Law, regarding the tax effects of outsourcing, will enter into force as of August 1, 2021, and the provisions of the State Employees Law, regarding the prohibition of outsourcing of personnel of these workers, will enter into force as from the 2022 tax year.
OUTSOURCING AMENDMENT
sensei
26/04/2021
On April 23, 2021, a Decree was published in the Federal Official Gazette amending several legal provisions regarding the outsourcing.
The main points of the amendment are the followings:
– Outsourcing of personnel is banned, which means that you may not provide or make available your own employees for the benefit of another person.
– The outsourcing of services and specialized works other than the corporate purpose and the main economic activity of the beneficiary is allowed.
– Complementary or shared services or works provided between companies of the same business group are allowed as long as they do not form part of the corporate purpose or the predominant economic activity of the company that receives them.
– Companies that provide specialized services or perform specialized works are required to register before the Ministry of Labor and Social Welfare. This Ministry has 30 calendar days from the entry into force of this -Decree to issue the provisions regarding the procedure to obtain such registration.
– The outsourcing of specialized services or works must be recorded in a written contract and there will be a joint and several liability in labor, social security, tax and criminal matters of the contracting party and the contractor, so the first one must continuously verify that the second one fulfills all its obligations.
– The amount of employee profit sharing will have a maximum limit of three months of the employee’s salary or the average of the profit sharing received in the last three years, whichever is more favorable to the employee.
– Penalties are imposed, such as fines on those who do not allow inspection by the authorities and/or those who outsource or benefit from outsourcing without registration, as well as the non-deductibility of taxes and even criminal liability.
The amendment entered into force the day after its publication; however, the amended provisions of the Federal Tax Code, the Income Tax Law and the Value Added Tax Law, regarding the tax effects of outsourcing, will enter into force as of August 1, 2021, and the provisions of the State Employees Law, regarding the prohibition of outsourcing of personnel of these workers, will enter into force as from the 2022 tax year.
