[Brazil] Senate will hasten payroll exemptions bill analysis

Brazil’s Senate President Rodrigo Pacheco has announced that the upper chamber of Congress will give priority to a bill extending payroll tax exemptions to seventeen economic sectors until 2023, The Daily Reformer reports.

The current benefit is set to expire on December 31. The industries it favours are among the highest employers in Brazil.

Approved by the lower house’s Constitution and Justice Committee last week, the bill reportedly gives employers the option of substituting 20 per cent social security contributions on payroll for a straightforward tax on gross revenue, ranging from 1 per cent to 4.5 per cent.

Among the seventeen sectors to benefit from the exemption extension are roadway transport, textiles, machinery and equipment, civil construction, animal protein and the footwear industry.

If the extension is approved, this will be the second time Congress has voted to extend the benefit. Exemptions were originally scheduled to end in 2020 but the deadline was pushed back until this year. The initial proposal foresaw an extension until 2026 however the draft was amended after an agreement between the government’s economic team and lawmakers.

Source: The Daily Reformer

(Links via original reporting)

Brazil’s Senate President Rodrigo Pacheco has announced that the upper chamber of Congress will give priority to a bill extending payroll tax exemptions to seventeen economic sectors until 2023, The Daily Reformer reports.

The current benefit is set to expire on December 31. The industries it favours are among the highest employers in Brazil.

Approved by the lower house’s Constitution and Justice Committee last week, the bill reportedly gives employers the option of substituting 20 per cent social security contributions on payroll for a straightforward tax on gross revenue, ranging from 1 per cent to 4.5 per cent.

Among the seventeen sectors to benefit from the exemption extension are roadway transport, textiles, machinery and equipment, civil construction, animal protein and the footwear industry.

If the extension is approved, this will be the second time Congress has voted to extend the benefit. Exemptions were originally scheduled to end in 2020 but the deadline was pushed back until this year. The initial proposal foresaw an extension until 2026 however the draft was amended after an agreement between the government’s economic team and lawmakers.

Source: The Daily Reformer

(Links via original reporting)