Key Tax Law Changes in December 2023: A Summary of New Rules and Regulations
These new tax rules approved in December 2023 are set to have a significant impact on businesses and taxpayers in Brazil. From changes to social security contributions to extensions of tax benefits, the legal landscape is evolving rapidly.
One of the key changes is the revocation of tax benefits for the Social Security Contribution on Gross Revenue (CPRB) and the gradual retaxation of payroll through reduced rates on the Employer Social Security Contribution (CPP). Companies will need to comply with new requirements and maintain a certain number of employees to benefit from these reduced rates.
Additionally, the extension of the REPORTO regime until 2028 and the tax benefits for the ZFM, the Western Amazon, and the ZFM IT law until 2073 provide stability and certainty for businesses operating in these regions.
The introduction of a special program to incentivize the voluntary disclosure of federal tax liabilities offers taxpayers the opportunity to settle past-due taxes without incurring late payment fines and interest. This program aims to encourage compliance and reduce tax evasion.
Furthermore, the new rules for subsidies for investments and the creation of a tax credit mechanism provide companies with additional options for financing infrastructure projects and reducing their tax burden.
Overall, these changes reflect the government’s efforts to streamline tax laws, promote investment, and ensure compliance. Businesses will need to stay informed and adapt to these new rules to navigate the evolving tax landscape effectively.