12/8/2021
On the morning of November 17, the Constitution, Justice, and Citizenship Commission (CCJ) of the House of Representatives approved, in a symbolic vote, Bill of Law (PL) No. 2,541/21, which provides for the extension of payroll exemption for 17 sectors of the economy until December 31, 2023.
Effectively adopted in 2011, the aforementioned tax relief policy gives taxpayers the possibility of, instead of the payroll, deciding to levy the employer contribution on the amount of their gross revenue, i.e., companies are now subject to rates ranging from 1% to 4.5% on gross revenue, instead of the 20% that would be levied on the payroll.
This measure may benefit several sectors such as: leather, footwear, apparel, textiles, poultry, pork, and derivatives (industry); IT & ICT, Call Center, Hotels, and Design Houses (services); road freight, air, and subway (transportation); and civil construction (construction).
On the other hand, under the justification of safeguarding and guaranteeing the balance of costs between imported and domestic products, the PL also proposes an increase in the Cofins-import percentage of 1% until the end of 2023.
The original text provided for the extension of this tax exemption until the year 2026. However, according to the rapporteur of the PL, Congressman Marcelo Freitas (PSL-MG), due to an agreement reached in conjunction with leaders of the Federal Government, there was an change and the extension would be valid until December 2023, thus avoiding the possibility of a veto by President Jair Bolsonaro.
Finally, PL no. 2.541/21 may still be modified during its course in the National Congress and, if approved, it will continue to positively affect several sectors of the economy, as well as fostering the maintenance of millions of jobs.
Our tax team is at your disposal to provide clarification and guidance on the subject addressed.
Co-authored by: Phillipe da Cruz Silva and Tiago Zonta Guerreiro.
