Disclosure of the “Accident Prevention Factor” – FAP applicable to 2023
Please be advised that, on September 30 2022 (Friday), the Social Security Department website released on the Internet, the new “Accident Prevention Factor” (“FAP”) rate for each company, which will have a direct impact on company’s payroll social contributions for the year 2023.
FAP is a multiplication factor – that varies from 0,5 to 2,0 points) applied upon the tax rate of the “Labor Accident Contribution” (“SAT”) and it is calculated based on the frequency, level of importance, and treatment cost of the labor illnesses and labor accidents of each company.
In order to obtain the SAT rate for the year 2023, the taxpayers must multiply the SAT rate by the FAP released.
Example of Calculation:
- Company’s branch SAT = 3%
- Company’s branch FAP = 1.5
- SAT for 2023: SAT x FAP = 3 x 1.5 = 4.5%
Accordingly, the companies that present low incidence of labor illnesses and accidents (consequently, low FAP) may reduce their SAT tax rate (either 1%, 2% or 3%) down to 50% (fifty per cent).
On the other hand, the legal entities that present high incidence of labor illnesses and accidents, may suffer the increase of their SAT tax rate, up to 100% (a hundred per cent).
Therefore, we alert that each company should verify its FAP rate applicable to 2023 as well as verify and analyze the list (released with the FAP) of labor accidents and illnesses occurred during this period.
The consultation of the FAP applicable to 2023 is made through the link:
https://www2.dataprev.gov.br/FapWeb/pages/login.xhtml. – in order to have access to its personal data on the website, the company must present its register number before the Federal Revenue Department (“CNPJ”) and the pin code provided by the Social Security Agency.
In addition, we also inform that FAP rate will be individually calculated for each of the company’s branch that has its on CPNJ register.
In case the company disagrees with the data disclosed by the Social Security Ministry (in which was based the FAP calculation), the company will be allowed to file an administrative defense before the Department of Health Politics and Labor Security (Social Security Ministry Department) during the period of November 01 to November 30, 2022, through an electronic form available on the Social Security Department website on the Internet.
Finally, we stress that the companies may also challenge the application of FAP on the Judicial level, as well as the unduly increase of the SAT tax rate occurred in 2009.
This e-alert is a general review of the subjects discussed above and does not constitute a legal opinion or legal consult.