Interest on late payment is a percentage rate on late payment of a credit instrument within a certain period of time.
Default interest is the penalty imposed on the debtor for delay in fulfilling his obligation.
The late payment interest works as a kind of indemnity for the delay in the execution of the debt, the interest can be agreed between the parties or, in the absence of an agreement, the interest determined by law shall apply.
These are additions allowed by law to the creditor of a debt, characterized as a legal mechanism to avoid default by those in debt.
For calculate the amount of interest for late payment one can add to Selic rate from the month following the due date of the tax to the month prior to the payment, and add 1% to this sum for the month of payment.
The default interest rate can also be applied to the amount of tax or contribution due, and a maximum of 2% of the amount of the overdue installment is allowed by law.
Failure to pay any type of account on the due date will necessarily result in a fine or late payment interest.
Learn more about the meaning of Fees.