Put Mariana Martins – 22/07/2020
After great expectation from the legal and business community, the Federal Government sent its tax reform proposal to the National Congress yesterday (21.07.2020), embodied in the Bill No. 3887/2020, which will be processed urgently and which aims, among other issues, to create the so-called Tax on Goods and Services (CBS), which will replace PIS/COFINS and PIS/COFINS-import.
Bill No. 3887/2020 contains 130 articles and will certainly be subject to many amendments, until its possible conversion into Law.
In a first, not so in-depth analysis, CBS would have the following characteristics:
- Contribution non-cumulative, with the extinction of the cumulative regime;
- Aliquot flat of 12%, higher than the 9.25% required today in the non-cumulative system and in the import of services, and almost equal to the 11.75% charged in the import of goods;
- Tax rate of 5,80% applicable to financial institutions and insurance companies, higher than the 4.65% currently required, and without the possibility of crediting;
- More simplified calculation, carried out “externally”, without including ISSQN, ICMS and CBS itself in the base;
- Broad crediting, with the credit corresponding to the value highlighted on the invoice for the purchase of the merchandise, input or service;
- Appropriation of the credits in the 5 year period; and
- Possibility of using PIS/COFINS credits to compensation with CBS, during and after the transition period, subject to the aforementioned 5-year appropriation period.
The Government's initial proposal should be compatible with PECs 45 and 110, which aim to create a single tax concentrating other levies such as IPI, ICMS, ISSQN, IOF, CIDE-Fuel and Education Salary.
Our tax team will closely monitor the progress of Bill No. 3887/2020, as well as other proposals already presented, in order to understand the macro contours of the reform and offer advice to you and your company at all stages, from the transition to the complete implementation of the expected new tax system.