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Brazil: Certain employee meal benefits subject to social security

Brazil: Meal benefits subject to social security

A recent tax appellate court decision recognizes the nature of certain meal benefits that companies provide to employees as salary and as being subject to social security contributions.


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The meals program is known as the Programa de Alimentação do trabalhador (PAT).

Previously (before the issuance of a new regulation), companies applying the PAT system typically followed a practice of hiring and contracting with others that operated meal and food voucher services, to provide the employee meal benefits. In turn, discounts were credited to those employers under the contract. Following the issuance of Portaria nº 1.287/2017, this commercial practice of contracts for employee meals under the PAT system was no longer available. 

The tax appellate court (Conselho Administrativo de Recursos Fiscais) recently issued a decision (Process # 10166.722657 / 201072) that recognized the salary nature of the meals benefit granted by a company with irregular enrollment in the PAT, and held such benefits as being subject to the social security contribution corresponding to the value of the benefits provided to the employees.


Read an August 2018 report (Portuguese) prepared by the KPMG member firm in Brazil

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