Bolsonaro sanctions payroll exemption until the end of 2023 | Politics

Bolsonaro sanctions payroll exemption until the end of 2023 | Politics
Bolsonaro sanctions payroll exemption until the end of 2023 | Politics

The bill to authorize this extension was approved three weeks ago by the Senate and went on for analysis by the President of the Republic. The text had already passed through the Chamber of Deputies.

The exemption allows companies to replace the social security contribution, of 20% on employees’ salaries, for a rate on gross revenue, which varies from 1% to 4.5%.

The text approved at the Congress covers the sectors of textile, footwear, machinery and equipment, animal protein, civil construction, communication and road transport, among others.

A 1991 law determines that companies pay, on a monthly basis, an amount corresponding to 20% of all remuneration paid to their employees with or without a formal contract. This money that the government collects goes to the areas of social security – social security, social assistance and health.

The sanctioned law allows companies to be authorized to replace this payment with a tax on gross revenue, at a rate between 1% and 4.5%.

This exemption would end in 2020, and the National Congress approved the extension until the end of 2021. Bolsonaro even vetoed the extension, but the National Congress overturned the veto and, in practice, extended the exemption until the end of 2021.

With the publication of the sanction in the “Official Gazette of the Union”, the measure is valid until December 2023.

Source

Bolsonaro sanctions payroll exemption Politics

 
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