Minister Cristiano Zanin maintains payroll tax relief for 60 days

Minister Cristiano Zanin, of the Federal Supreme Court, suspended the decision that overturned the payroll tax exemption for 17 sectors of the economy and municipalities with less than 156 thousand inhabitants. This measure is valid for 60 days and maintains the rate of 8%. The information was released by the Federal Senate.

The Federal Attorney General’s Office (AGU) had filed a request with the Federal Supreme Court (STF) to suspend the action questioning the extension of the exemption for companies until 2027. The decision came after an official statement from the Senate, in favor of the request.

AGU requests suspension of the payroll tax relief process from the Supreme Court

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The president of the National Confederation of Municipalities (CNM), Paulo Ziulkoski, explains that municipalities and productive sectors would have to return to paying 20% taxes on payroll this Monday (20).

“Today, the mayors are already collecting 8% and not 20% and this is a lot of relief. Today, the mayor of Rio Grande do Sul had to pay around 90 million per month. (It’s a value) that is already there for the mayor to attend to, to do what he is doing for Rio Grande do Sul”, he points out.

According to the proposal, payroll tax relief for companies will be implemented gradually from 2025. The urgent request to vote on this matter in the Plenary has already been submitted.

Asafe Gonçalves, specialist in tax law and managing partner of Asafe Gonçalves Advogados, explains that the payroll tax exemption was created in 2011, on a temporary basis, as a way of replacing the 20% social security contribution.

“We come from a Brazil in crisis, which needed some type of help or promotion so that companies could survive. And somehow, this could lead to this increase in the competitiveness of companies, because it allowed them to reduce their prices and increase their profits”, he points out.

March in Defense of Municipalities

For Paulo Ziulkoski, the measure “brings breath to city halls across the country” and represents a “great” achievement for municipalities on the eve of the XXV March to Brasília in Defense of Municipalities, which has 9,524 registered participants.

The president of the CNM emphasizes that it is “important” to guarantee the approval of Plenary Amendment 06 to PEC 66/2023 in the Senate to make payroll tax relief a permanent measure for municipalities.

The amendment proposed by the CNM requests equality for other sectors such as philanthropic entities, micro and small companies, agribusiness and football clubs, an escalation of the rate from 8% in 2024, increasing to 10% in 2025, 12% in 2026 and remaining at 14 % from 2027.

By Brasil 61