The PIS, or the Social Integration Program, is a contribution to a tax targeted at legal entities and guaranteed by the Complementary Law n° 07/1970. This contribution has as purpose to form a monetary fund to finance the payment of the allowance wage, unemployment insurance and shares in the revenues of the companies.
The PIS is a tribute on the profit that private companies pay, without discounting anything from the employee. When created, your company’s philosophy was to distribute among all the workers of the country its share in the profits of the companies, in allowances, and income (these only for the registered until 04/10/88), regardless of where they have worked, thus reinforcing the integration of the worker in the growth of companies, as well as providing a greater distribution of income to the national level, boosting the economy.
Every employer should deposit a percentage of the payroll of workers in a specific fund that operates as a savings, and this percentage varies according to the regime of taxation for each company or body. Then the worker registered for more than five years in the PIS/PASEP can receive annually an allowance in the amount equivalent to a minimum wage.
When registered, the employee employee shall have a card and your registration number available. This document is what enables the query and withdrawals of benefits that the worker may receive, such as Unemployment Insurance and the Guarantee Fund for Time of Service.
For public servers there is the PIS/PASEP, which works in a similar way, the objective is both to contribute to the fund of support to the worker. In both cases the workers can withdraw them after retirement, or by the heir neighbor (wife, husband, child, etc.), in the event of death.
Created by the federal government, the PIS is coordinated by the Caixa Econômica Federal. As to the payment of PIS is done by the Box, while the payment of the PASEP is carried out by the Bank of Brazil.
To receive the benefit, it is necessary to fulfil some requirements of the law. They are:
- Having worked with employment relationship, for a minimum of 30 days in the base year that is considered for the assignment of the benefit;
- Have received a remuneration of a maximum of two minimum wages in the base year considered;
- To be registered in the PIS/PASEP for at least five years;
- Be with the data reported correctly to the Rais (Annual Social Information) during the base year considered.
PIS / PASEP
While the PIS is intended for workers in the private sector, the PASEP (Program for the Formation of Patrimony of the Public Server) is intended for public servants, civilian or military. Both have the same basic requirements to be able to the benefit.
Similar to the COFINS, the PIS vigora in two different regimes: the regime-cumulative and non-cumulative. Its main features are:
- Scheme update: in this scheme the value of the contributions payable is calculated directly on the basis of the calculation, and there is a discount of credits.
- Scheme non-cumulative: in this regime, the taxation destined to PIS is applied on the value added.