President Jair Bolsonaro sanctioned this Friday (31) the project that extends for another two years, until December 31, 2023, the exemption from the payroll for 17 sectors of the economy that use more jobs. The text was published in an extra edition of the Diário Oficial da União (DOU).
The subscription takes place within the deadline for this extension because the reduction in force in the charges levied on employees’ salaries would expire on this December 31st. The decision had been made since November.
With the exemption, companies will continue to collect less taxes in relation to the workers’ payroll. The 17 sectors benefited by the measure, which employ six million people according to business entities, are footwear, call center, communication, apparel/clothing, civil construction, construction companies and infrastructure works, leather, vehicle and bodywork manufacturing, machinery and equipment, animal protein, textile, information technology (IT), communication technology (ICT), integrated circuit design, metro-rail passenger transport, collective road transport and road freight transport.
The exemption has been adopted as a measure to encourage the maintenance of jobs, since it reduces the charges paid by companies in relation to the workers’ payroll.
With the measure, taxes on employees’ salaries are exchanged for a fixed rate on sales. These companies can choose whether to pay a 20% social security contribution on employees’ salaries or a rate of 1% to 4.5% on gross sales.
According to the government, the delay in sanctioning the project was due to the need to ensure that there would be no loss of revenue, as established by the Fiscal Responsibility Law (LRF). As the 2022 budget was approved without including the impact of the tax relief that had already been approved by Congress, the Ministry of Economy demanded that a way to compensate for the maintenance of the benefit on the workers’ payroll be presented.
The Senate’s Independent Fiscal Institution (IFI) calculates that a new extension of the payroll tax exemption for specific sectors of the economy will have an impact on the federal budget of BRL 6 billion in 2022 and BRL 9 billion in 2023.