Insights & Media

News

2019-09-30
Tax Department explains the payment of wages against invoices

News

CCA Law Firm, in collaboration with Dinheiro Vivo, clarifies Labour and Tax Law questions to the readers of this media.

"They want to pay me part of my salary against invoices. Is that legal? » was the question brought to the Tax Department. According to the experts,  "even if companies can reimburse employees for invoices, these reimbursements are usually based on the expense of the employee when working for the company. However, if the expense to which the invoice relates was not incurred when the employee was working for the company (but rather by the employee within his/her personal sphere), materially we are facing the payment of wages, which, under the law, must be declared (and taxed) as such. In such cases, both company and employee may be required to pay the unpaid IRS, plus interest at the rate of 4% per annum, as well as be required to pay fines for the corresponding tax offenses (...)".