Compensation is the act of offset, that is, giving something in exchange for a favor or effort made by someone else. It is considered an action that generates the balance and equality between two parties, so that there is no one with greater or lesser weight than the other.
Under the law, compensation consists of annulment of an obligation when it presents a situation of reciprocity between the parties. For example, when a subject is both a creditor and a debtor. In this case, the obligation to pay the debt is canceled for both parties.
However, there are some basic requirements for the application of legal compensation, such as: the reciprocity of obligations, homogeneity of benefits (debts must have the same nature) and credit must have value economic.
The debt is only canceled in its entirety when the amount is equal between the two creditor-debtor parties, if one of the parties owes more than the other, the amount written off will refer to the lower debt. The remainder of the amount must be paid by the person who has the greatest debt.
Example:
Subject A owes R$ 500 to subject B. Subject B owes R$600 for subject A. After applying the compensation, subject A pays off its debt with subject B, who will still have to pay R$ 100 to subject A.
As subject B initially owed R$600, after discounting the minimum amount canceled, in order to have the correct compensation, subject A needs to receive R$100 from B.
Among some of the main synonyms of compensation they are: counterpart, balance, equivalence, proportion, equality, parity, indemnity, retribution, reparation, restitution, compensation, among others.
tax compensation
It consists of an instrument that guarantees the possibility of total or partial deduction of a tax debt when the subject (person physical or legal) has a credit in the same administration that collects the tax, such as the Federal Revenue Service of Brazil (RFB).
Learn more about the meaning of Tribute.
check clearing
It is an arrangement made between different banks, when a check is deposited in bank A, but withdrawn in bank B, for example. The clearing period for a check usually varies, and the cash amount will only be available for withdrawal after the clearing process is complete.
In Brazil, this service is mediated by Branco do Brasil, the executing agency of Compe – Check Clearing Centralizer.
Environmental compensation
When a company or enterprise attacks the ecosystem, it is responsible for carrying out environmental compensation, in order to balance the environmental impacts caused in that region.
For this, the company must pay compensation for the environmental imbalance that it caused or is expected to cause, this amount being incorporated into the overall costs of the project.
Environmental compensation is a public policy instrument, supported by Law No. 9,985/2000, known as the National System of Nature Conservation Units, and Law No. 6.938/1981, which institutes the National Environmental Policy Environment.