The measure announced by Haddad limits the program's continuation for another two years. “PERS is a very broad program for a sector that came back strongly after the pandemic and has become unsustainable for the public budget,” Robinson Barririnhas, Federal Revenue Minister, said at a press conference.
4- Company compensation rules
Companies will have new rules to offset their losses when deducting income tax from year to year. The government caps the amount a company can compensate for its losses at 30%.
Offsetting is used by companies that have paid wrong taxes in the past. In practice, compensation is when a company stops paying taxes in subsequent years to compensate for paying undue taxes or even previous losses. The court recognizes the compensation.
The measure proposed by Haddad Saleh for compensation exceeding R$10 million. According to the minister, this measure will not lead to an increase in revenues, but rather will prevent next year’s budget from being harmed by these tax compensations. The reason amounts to about half a trillion riyals, according to Haddad.
According to the minister, this only affects large companies. The minister said in a press conference: “There are multinational companies that have not paid taxes for years, as compensation.” The minister stated that “one company obtained the right to compensate more than 4 billion Brazilian reals.” He did not say which company he was referring to, but in September Estadão reported that the Federal Revenue Service had questioned ABEV3 in connection with operations linked to the payment of income tax on profits abroad.
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