On 30 September, the Brazilian Ministry of Labour and Social Security released the Accident Prevention Factor indexes (Fator Acidentário de Prevenção – FAP) that will apply in 2022. FAP is a part of the Social Security requirement of your Brazilian payroll, and the index allows your company to evaluate the tax burden on next year’s payroll.

The FAP rate changes each year and is specifically calculated for each company. Companies that record more accidents or illnesses pay more, and FAP provides benefits for companies that record less accidents. Where there are no illness/accident related terminations, companies can receive a 50% reduction in RAT – Riscos Ambientais do Trabalho (Work Environmental Risks).

It’s important to check for any inconsistencies in the FAP attributed to your company. Any inconsistencies identified can lead to a reduction in Social Security costs – just contact your Occupational Health and Safety partner. The deadline for dispute filings is 30 November 2021.

The indexes can be found on the Social Security website (www.gov.br/previdencia) and the website of the Federal Revenue Office (www.gov.br/receitafederal)

If you’d like to discuss the options for your Brazilian company, contact our Sāo Paulo team.

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Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

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André Ricardo Dannemann
Country Manager Brazil

All information contained in this publication is up to date on 2021. 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.