Congress overturns veto on debt renegotiation for MEIs and Simples Nacional companies

This Thursday (10) Congress overturned President Jair Bolsonaro’s (PL) veto of the project that opens a tax debt renegotiation program for MEIs (individual microentrepreneurs) and Simples Nacional companies.

In the Chamber, the veto was rejected by 430 to 11 – at least 257 deputies were needed. In the Senate, the score was 65 to 2 — it needed at least 41. For the veto to fall, both houses needed to vote in favor of the overthrow.

Bolsonaro was against vetoing the measure, but he answered the Ministry of Economy and the AGU (Advocacy-General of the Union), who pointed out the risk of violating the LRF (Fiscal Responsibility Law) and provisions of the LDO (Budget Guidelines Law) and the Constitution.

The president himself defended that his decision be overturned by Congress. In addition, on the 11th, the government issued an ordinance to renegotiate debts of Simples companies with the PGFN (Attorney General of the National Treasury), but the measure was considered insufficient.

At this Thursday’s congressional session, Senator Jorginho Mello (PL-SC), who guided the government, said that Bolsonaro himself asked him to work to overturn the veto.

In a note, deputy Marco Bertaiolli (PSD-SP), rapporteur for Refis do Simples in the Chamber, stated that the rejection of the veto was “another demonstration by the National Congress that it is sensitive and active in defense of job creation and recovery of Brazil after two hard years of a pandemic that still produces negative effects”.

“The special installment of debts of micro and small companies goes beyond the fundamental aspect. It is vital for the survival and solvency of the main generators of jobs in the country”, he said.

According to sources in the economic area, the impact on this year’s collection would be approximately R$ 600 million. The government estimates that R$ 50 billion could be negotiated.

The Simples Refis allows registered companies and MEIs to pay their debts in up to 180 months (15 years). The Relp (Program for Rescheduling Payment of Debts in the Scope of Simples Nacional) determines minimum installments of R$300 for those who join, with the exception of MEIs, who can pay at least R$50 per month. The discount can reach 90% in the case of fines and interest and 100% of legal charges.

The adhesion may be made until the last working day of the month following the publication of the law. As the measure still needs to pass the presidential sanction, there is still no estimate of the start and end date for registration.

As a rule, the indebted entrepreneur must pay part of the amounts, with a discount, as soon as he joins Relp. The remaining debt balance may be paid in up to 180 months (15 years), with the exception of debts with Social Security, which have a deadline of up to 60 months (five years). The installment is due in May of each year, starting in May 2022.

The ordinance edited by Bolsonaro covers only debts already registered in the Union’s active debt, not including those in the administrative phase of collection by the Federal Revenue.

According to the ordinance, Simples Nacional companies will have until March 31 to join the negotiation. Those who opt for the modality will need to pay an entry equivalent to 1% of the negotiated value, in up to eight installments.

The remaining balance of the debt must be paid in up to 137 installments, with discounts of up to 100% in interest, fines and charges. The rebate, however, cannot be greater than 70% of the total debt value (principal plus corrections).