To try to overcome resistance from states and municipalities, the project to reform the Income tax it will contain a device to link a part of the expected drop in the tax charged from companies to a collection target, according to the rapporteur, deputy Celso Sabino (PSDB-PA), anticipated to the Estadão.
The proposal was presented yesterday by him to state finance secretaries and to the National Confederation of Municipalities (CNM). According to Sabino, the mechanism would serve to avoid loss to state and municipal coffers with changes in the IR – whose collection is shared with the Union.
Critics of the project, the regional governments presented an account that shows a loss of at least R$ 27.4 billion in revenue with Sabino’s initial opinion. In other words, they would be responsible for most of the project’s lost revenue, estimated at R$30 billion in total.
Sabino’s report predicts a 12.5 percentage point cut in the corporate income tax rate in two years – 10 points in 2022 and another 2.5 points in 2023. dividends, exclusive funds and the end of the possibility of deducting Interest on Equity (JCP), in addition to the end of exemption from housing allowance and food for public agents, would easily cover a reduction in the rate of 7.5 percentage points .
The other 2.5 points would be linked to the increase in collection adjusted for inflation. Sabino explained that, in this way, it would be possible to start with the 10 percentage points drop foreseen in the project for 2022, since it is likely that the collection in 2022 will remain at a level higher than this year’s.
According to him, the text will have a paragraph establishing the rate reduction of 7.5 percentage points of the IRPJ. In another paragraph, a drop of over 2.5 percentage points will be established, linked to the collection goal. In other words, the collection will have to surpass that of the previous year.
In 2023, the expected drop of another 2.5 percentage points will only be granted if the collection again beats the 2022 collection corrected for inflation. The measurement of the fundraising target will be done in the period of 12 months until October.
The rapporteur said that the secretary of the Federal Revenue, José Tostes guaranteed this increase. “Secretary Tostes, who is here beside me, guarantees that the revenue will hit and we guarantee that the market will drop by 10 percentage points. And, for the states and municipalities, we guarantee that the FPM (Fund) revenue will not fall. Participation of Municipalities) and the FPE (Fund for Participation of the States and the Federal District)”, said Sabino.
According to the deputy, in the following years, after 2023, the Revenue forecasts a greater increase in collection resulting from the return of taxation of profits and dividends and the profit of national individuals that are being accumulated in tax havens. Today, these profits are not taxed and will be collected from 2023 onwards. These amounts will be declared by the individual in the IR and will have a legal origin – this measure is provided for in the project.
Yesterday’s two meetings opened a dialogue with regional governments, but mistrust continues. The States continue to believe that the math does not end and that the reduction of the tax burden on companies has to come from a tax that is not shared, such as the Social Contribution on Net Income (CSLL).
“I don’t think we have a proposal. It was important that the rapporteur has shown himself sensitive and concerned about the discrepancy that exists,” said the secretary of Finance of Rio Grande do Sul, Marco Aurélio Cardoso.
According to the president of the National Committee of State Finance Secretaries (Comsefaz), Rafael Fonteles, the meeting was short and the rapporteur did not present the text. According to him, Sabino showed openness to make a convergent text. “I avoid speaking without seeing the text because everything changes,” he said.
Exemption for profit should be R$ 20 thousand
The rapporteur of the Income Tax reform, deputy Celso Sabino (PSDB-PA), signaled that he should not increase the tax exemption range for the distribution of profits and dividends from R$ 20 thousand to R$ 25 thousand in his final opinion.
Sabino informed Estadão that he is not going to extend the tax exemption of up to R$ 20,000 to other companies as well. In the original project and in the preliminary opinion, the exemption of up to R$20,000 is only valid for companies that are classified as micro and small companies and earn up to R$4.8 million, even if they are not necessarily from Simples.
The larger exemption range open to all companies would benefit, above all, companies that pay for the presumed profit, such as large law firms. Without the extension, these companies will have an increase in the tax burden. “I don’t know where they’re getting this R$25,000 number. Is it to see if it sticks? I don’t even know if I’m going to change the exemption, for now, it’s R$20,000,” said Sabino. Last week, Economy Minister Paulo Guedes said the exemption could go up “a little bit”. “I don’t want to mess with dentists, doctors, liberal professionals, we don’t want to reach the middle class, nothing like that.”
As shown by Estadão, Simples companies will have full exemption. In an online event organized by the Political Leadership Center (CLP), Sabino sought to show that the Simples exemption will have a low cost: R$ 50 million in 2022. He reinforced the thesis that the project will inject more than R$ 100 billion into the economy and stimulate growth.
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