Atalho

News

Covid-19 Fighting on all fronts

Provisional Measure – PM No. 932/2020 – 50% reduction on tax rates applicable for contributions due to Third Parties for 3 months (Covid-19 – “Sistema S”)

01/04/2020

Provisional Measure – PM No. 932/2020 – 50% reduction on tax rates applicable for contributions due to Third Parties for 3 months (Covid-19 – “Sistema S”)

The legislation determines the levy of Social Security Contributions and Social Contributions due to Third Parties upon the total compensation paid to the employees.

In general, the contributions due to Third Parties represent the following burden on the monthly payroll: (i) 2.5 due as ‘education salary’ (FNDE); (ii) 0.2% due as INCRA; and approximately (iii) 3.1% due as contributions to “System S” (SEBRAE, SESI, SENAI or SEBRAE, SESC, SENAC), which is applicable to the industry sector the taxpayer falls into, in order to stimulate industrial, rural, commercial companies, etc.

On March 31, 2020 was enacted the Provisional Measure (PM) No. 932/2020, which determined a 50% reduction on the tax rates applicable to contributions due to “Sistema S”, during the period of April 01 to June 30, 2020, except for the SEBRAE contributions (0.6%), as summarized below:

ENTITY (Sistema S) PREVIOUS TAX RATE REDUCED TAX RATE
SENAI 1% 0.5%
SESI 1.5% 0.75%
SENAC 1% 0.5%
SESC 1.5% 0.75%
SEST 1.5% 0.75%
SENAT 1% 0.5%
SESCOOP 2.5% 1.25%
SENAR (Agroindustry rural producer PJ)* 1.8% upon payroll; and 0.25% upon gross revenue of rural prod. 1.25% upon payroll; and 0.125% upon gross revenue of rural prod.
SENAR (Individual rural producer)* 1.8% upon payroll; and 0.20% upon gross revenue of rural prod 1.25% upon payroll; and 0.10% upon gross revenue of rural prod.

*option for the collection of the social security upon gross revenue of rural production.

The Federal Government also announced that such reduction, for 3 (three) months, should represent a temporary relief of approximately R$ 2.2 billion in ‘cash flow’ for these companies.

Please let us know should you need any further clarification, as well as to explore the details of tax measures recently adopted by the Brazilian Government, including the possibility of filing a judicial measure to postpone the payment of federal taxes as a result of the COVID-19 pandemic and/or to declare the taxable basis of the third parties contributions as unconstitutional.This e-alert is a general review of the subjects discussed above and does not constitute a legal opinion or legal consult.

Share on Social Media
Trench Rossi Watanabe
São Paulo
Rua Arq. Olavo Redig de Campos, 105
31º andar - Edifício EZ Towers
Torre A | O4711-904
São Paulo - SP - Brasil

Rio de Janeiro
Rua Lauro Muller, 116 - Conj. 2802
Ed. Rio Sul Center | 22290-906
Rio de Janeiro - RJ - Brasil

Brasília
Saf/s Quadra 02 - Lote 04 - Sala 203
Ed. Comercial Via Esplanada | 70070-600
Brasília - Distrito Federal - Brasil

Porto alegre
Av. Soledade, 550
Cj. 403 e 404 | 90470-340
Porto Alegre - RS - Brasil

press
JeffreyGroup
Nara Neri 55 11 3185.0800 | Ext.832

Ícone do Instagram
Ícone do Podcast
Ícone do Facebook
Ícone do YouTube
Ícone do Linkedin