Uber and Other “App” Drivers can Soon Register as Microentrepreneurs

By Xiu Ying, Contributing Reporter

RIO DE JANEIRO, BRAZIL – The Ministry of Economy has confirmed Friday (3rd) that it is studying a decree to regulate the requirement for the registration of drivers of “Apps” at the National Institute of Social Security (INSS).

Last year’s Law 13.640, which regulated the profession, will serve as a basis for the studies.

The ministry intends to allow self-employed drivers to register as individual micro-entrepreneurs (MEI), paying a lower tax rate of 5 percent of the minimum wage.

In this case, they will receive a lower benefit, limited to a minimum wage, as long as they contribute for at least 15 years and are at least 60 years old (women) and 65 years old (men).

The app driver may also choose to pay 20 percent tax rates on sales as an individual taxpayer. In this case, the self-employed professional will be entitled to a benefit higher than the minimum wage.

In both cases, the driver will not only be entitled to retirement, but also to other benefits, such as sickness allowance, maternity leave (for female drivers), retirement for disability and reclusion.

Only unemployment insurance is off the list as the worker will contribute as a self-employed rather than a company employee.