The rapporteur of income tax reform, deputy Celso Sabino (PSDB-PA), presents the first opinion to party leaders this Tuesday, 13, at lunch at the Official Residence of the Chamber of Deputies. Among the changes from the original text, he proposes a 12.5 percentage point cut in two years in the corporate income tax.
The government’s proposal was for a reduction of five percentage points by 2023. With the change, the IRPJ will be 2.5%, maintaining the 10% charged when the company earns more than 20 thousand reais a month, in addition to the Social Contribution on o Net Income (CSLL) of 9%, which remains untouched. The cut will be 10 percentage points in 2022 and 2.5 percentage points in the following year.
Sabino also announced that the real estate funds will remain tax free. The government’s proposal provided for a 15% charge. “Our substitute will keep the FIIs unencumbered. In addition, we will allow compensation in operations with shares of different types, for up to 3 months (losses offsetting profits)”, he wrote on Twitter.
About charge on profits and dividends, Sabino kept the 20% rate, but made some changes. Taxation will not be made within economic groups – that is, in holdings —, but only in the distribution made to individual shareholders.
too tax on the come-quotes drops real estate or investment funds in agriculture, development and infrastructure and exclusive funds for foreigners. The original text provided for the annuality of the come-cotas for all funds. Come-cotas is a process of early payment of income tax, applied in investment funds.
There will no longer be an obligation to opt for real profit proposed by the government for some companies, such as real estate companies and those operating voice and image rights. Under the actual profit regime, the calculation of IRPJ and CSLL is based on the company’s profit, income less expenses, with adjustments provided for by law.
Sabino also removed the provisions referring to the taxation of exchange variation. Anti-avoidance and anti-deferral measures are also part of the project. The rapporteur told the deputies that they will remain for a later proposal that will deal specifically with tax evasion.
Personal Income Tax
The rapporteur did not change the points relating to the IR of individuals. The proposal of the government to increase the exemption range from the current 1,903.98 reais to 2,500 reais, a correction of 31%. This means the inclusion of 5.6 million people on the list of those who do not need to file income tax.
Sabino maintained the part of the text that provides that those who earn more than 40 thousand reais a year will not be able to make a simplified declaration. The measure affects 6.8 million taxpayers. The current rules allow anyone to make the simplified declaration, with a rebate limited to 16,754.34 reais.