12/12/2022
The Emergency Program for the Resumption of the Events Sector (Perse) was instituted by Law nº 11.148/2021, with the purpose of establishing emergency and temporary actions aimed at the events sector, to compensate for the effects arising from the isolation measures carried out to face the Covid-19 pandemic. Whenever a company is classified as an “event sector company”, this might allow the use of different tax benefits established by law: i) reduction to 0% of PIS/COFINS, CSLL and IRPJ rates; and ii) compensation for the reduction of more than 50% in revenue between 2019 and 2020; and iii) possibility of carrying out a special transaction for the events sector.
However, since its publication, taxpayers have been questioning several points of the Law, such as the definition of company in the events sector, the extension of the benefits to the companies, as well as its application in different tax regimes.
On November 1, 2022, the Federal Revenue Service published Normative Instruction RFB n.º 2.114/2022, which clarified some points raised by taxpayers, but also restricted the application of the tax benefit that reduces PIS, COFINS, IRPJ and CSLL rates to zero.
According to the Normative Instruction, companies indicated by Ordinance of the Ministry of Economy nº 7.163/2021 can enjoy the tax benefit of the zero rate since March 2022. In addition, the Normative Instruction expressly indicates that companies included in the simplified taxation program (‘Simples Nacional’) cannot enjoy the tax benefits of the program.
The Normative Instruction has also limited the application of the 0% rate to revenues and results that are directly related to the services of the events and tourism sector listed in the Ordinance of the Ministry of Economy.
In general, the limitations arising from the Normative Instruction were questioned by some taxpayers. The main concern in the recent Tax Proceeding is that a Normative Instruction does not have the legal force to restrict or even revoke a benefit and must stick to disciplining the published legislation.
For this reason, companies in the events sector affected by the Covid-19 pandemic, whose benefits were limited by the application of Normative Instruction No. RFB No. 14,148/2021, seek to have recognized the right to benefit from the zero rates provided for by Law No. 14,148/2021.
Another point of attention to be considered by taxpayers is the tax transaction offered under Perse. The Federal Government makes it possible for taxpayers who qualify for the program to join the program until December 30, 2022. This method of negotiating federal debts allows a discount of up to 100% of the amount of interest, fines and legal charges levied on these debts, with the remaining balance being divided into up to 145 monthly installments.
Our tax team is available to provide clarification and guidance on the topic addressed.
Authored by: Enrico Sarti
