With the increase of autonomous and informal work in Brazil, many professionals are choosing to receive payments through PIX, the instant transfer platform of the Central Bank.However, this practice can cause several problems, especially related to the income statement and tax implications with the Federal Revenue Service.
Main Problems
Lack of Formal Registration: Many self-employed do not formalize their activities, which implies the absence of registration in the National Register of Legal Entities (CNPJ). This informality makes it difficult to prove income and obtain credit, in addition to harming future retirement. Without a formal registration, self-employed people are on the margins of various opportunities and benefits offered to formal workers.
Risk of Fines and Penalties: The IRS requires that all income be declared. Receiving only by PIX without proper declaration may result in heavy fines and other penalties. According to Revenue, the amount of fines may vary from 20% to 150% on the undeclared value, representing a large financial burden for the self-employed person.
Limitation of Social Security Benefits: The lack of regular contribution to the INSS prevents the worker from having access to benefits such as retirement, sick pay and maternity leave. Informality therefore not only endangers the immediate financial security, but also compromises the future social security of these professionals.
According to IBGE (Brazilian Institute of Geography and Statistics), in 2023, about 39.3 million people worked autonomously or informally, representing approximately 41.1% of the workforce in the country. This contingent faces significant challenges in formalizing its activities and adapting to tax requirements, further aggravating the financial and social security situation of these people.
Patricia Bastazini, specialist accountant at Bastazini Accounting, warns about the risks of this practice: “Receiving payments only by PIX without making the proper statement to the IRS is extremely risky. Many self-employed are not aware of the legal and fiscal implications, which can result in serious problems in the future. It is essential that these professionals seek guidance to regularize their situation and avoid complications.”
She also adds that regularization not only avoids problems with the IRS, but also opens doors to social security benefits and better credit conditions: “A formalization and the correct declaration of income allow the self-employed worker to have access to a series of benefits, such as facilitated credit and contributions to retirement. It is an investment in the safety and future of the professional himself
Paths to Regularization
To avoid the mentioned problems, self-employed people should follow some basic guidelines:
Formalization as MEI (Individual Microentrepreneur): MEI offers a simplified form of formalization, with low cost and access to social security benefits. This modality allows the self-employed to formalize quickly and with a reduced tax burden.
Maintain Income Record: It is essential to keep a detailed control of income received and expenses related to professional activity. This record is fundamental for the correct tax return and for the financial management of the business.
Seek Professional Guidance: Accountants and accounting experts can provide precise guidance on how to proceed with income reporting and tax obligations.Professional guidance can prevent errors and ensure that all obligations are met correctly.
Regular Contribution to the INSS: Ensuring regular contributions to the INSS is crucial to having access to social security benefits. These contributions ensure the social protection of the self-employed worker.
“The practice of receiving only by PIX may seem like a practical solution in the short term, but the risks and associated complications can be significant. Formalization and compliance with tax requirements not only prevent problems with the IRS, but also provide greater security and benefits to the self-employed. It is essential that these professionals seek guidance to regularize their situation and ensure a more stable and secure future”, explains Patricia.
In times of economic uncertainty, formalization and correct fiscal management become even more important. Self-employed workers should be aware of the risks and seek ways to formalize their activities, thus ensuring a safer and more balanced financial life.
