The National Program for the Support of Micro and Small Businesses (PRONAMPE) is a federal government program for the development of micro and small businesses, established by Law No. 13,999 of May 18, 2020. PRONAMPE will benefit about 4.5 million enterprises to enable them to cope with the economic and social crisis caused by Covid-19.

The Internal Revenue Service will begin to send communications to the Microenterprises (ME) and Small Businesses (EPP), with information on the value of gross income, based on the declarations of these taxpayers to the tax authorities, to make possible the analysis of the PRONAMPE credit line, with financial institutions.

In the first stage, starting on June 9, the ME and EPP who choose Simples Nacional will be notified through the Simples Nacional Electronic Tax Address (DTE-SN).

In a second stage, starting on June 11th, the communication will be sent through a post office box located in e-CAC to ME and EPP not included in Simples Nacional.

Companies with an opening date up to 31 December 2019 will be eligible for the programme. Only the ME and EPP that have declared, respectively, their receipts will receive the communications in the respective declarations in the table above. In case there is any divergence in the gross revenue information or if the respective declaration has not been submitted, the correction or inclusion of the gross revenue information must be done through the respective declaration. The details of the measure can be found in RFB Ordinance No. 978 of 8 June 2020, published in today’s Official Gazette (06/09).

PRONAMPE, which can be accessed by a total of approximately 4.58 million Micro and Small Enterprises (approximately 3.8 million Simples and about 78,000 non-Simples), establishes as a general rule that the credit will correspond to a maximum of 30% (thirty percent) of gross annual income, calculated based on the year 2019.

In the case of companies with less than 1 (one) year of activity, the credit line granted will correspond to the highest amount, since the beginning of their activities, between:

– 50% (fifty percent) of its share capital; or

– 30% (thirty percent) of the average monthly turnover.

The funds received within the scope of PRONAMPE will serve to finance commercial activity in its different dimensions and can be used for investments and working capital, their allocation for the distribution of profits and dividends among partners is prohibited.

The measure will not apply to micro and small enterprises that started their activities in 2020, as it is established by Law No. 13,999 of 18 May 2020.

Finally, it should be said that the IRS is working to facilitate the adhesion of Micro and Small Companies to PRONAMPE, making it easier for interested companies to prove their declared income, however, the concession depends on each of the financial institutions that participate in the program.

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Tania Braga de Campos

Tania Braga de Campos
International Desk Brazil

All information contained in this publication is up to date on 2020. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.