Brazil: Payroll tax relief election

Optional social contribution determination for certain employers

Optional social contribution determination for certain employers

The Finance and Taxation Committee of the Chamber of Deputies approved Bill No. 2.541/2021 that would extend through 2026 an optional social contribution determination for certain employers.

The social security contribution on gross revenue (Contribuição Previdenciária sobre a Receita Bruta—CPRB) was enacted by Law No. 12,546/2011 and regulated by Normative Instruction RFB No. 1.436/2013. The CPRB is an optional social contribution that has a tax character and replaces the standard social security contribution. Employers make a CPRB election in January of each year, and then are to contribute amounts determined at rates ranging from 1% to 4.5% with respect to the amount of their gross revenue.

Historically, the rules relating to the CPRB have been subject to a series of changes and updates, with the latest allowing companies in 17 sectors (including footwear, call centers, communication, apparel and clothing, civil construction, construction and infrastructure construction companies, leather, manufacturing of vehicles and bodywork, machinery and equipment, animal protein, textiles, information technology, communication technology, integrated circuit design, metro-rail passenger transport, collective road transport and road freight transport) the ability to use the CPRB-related substitution through the end of 2021.

Bill No. 2.541/2021 would extend this election though 2026.

Read a November 2021 report (Portuguese) prepared by the KPMG member firm in Brazil

 

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