By 398 votes to 77, the Chamber of Deputies approved yesterday (01.09) the basic text of the tax reform, which provides for several changes in the legislation on Corporate and Individual Income Tax (“IRPJ” and “IRPF”).
Among the main measures provided for in the text is the reduction of corporate income tax (IRPJ) from the current 15% to 8%, maintaining the additional 10%, and the CSLL (Social Contribution on Net Income) rates, with a reduction of 1%, from 9%, 15% and 20%, to 8%, 14% and 19%. The original text sent to Congress did not provide for a reduction in CSLL rates.
Another very relevant and controversial point of the proposal concerns the taxation of dividends in 20%, with companies registered in the Simples Nacional and those opting for presumed profit, with revenues of up to R$4.8 million, being exempt from the charge. Profits and dividends distributed among members of the same economic group also remain exempt.
The text also provides for the end of the deductibility of Interest on Equity (JCP), which in addition to being a way of remunerating partners and shareholders, brings tax advantages to companies.
Regarding investment funds, the part of the original text that provided for the taxation of FIIs (real estate funds) was removed, after strong resistance presented to the rapporteur of the project, congressman Celso Sabino. As for equity funds (FIP), the so-called equity funds, the main changes are in the taxation of gains obtained from the sale of investments in invested companies, which will be considered as distributed to the shareholders and taxed at 15%, even if not actually paid.
For individuals, the proposed amendment maintains the increase in the exemption range, at the current level of R$1,903.98 to R$2,500.00 per month. The limitation on the option for the simplified declaration was removed from the original text, which provided that only taxpayers with an annual income of R$40,000 could opt for this modality, a point that also generated controversy and was excluded.
The session ended yesterday before the analysis of the so-called highlights, which aim to discuss changes to the bill. The expectation is that the vote will continue this Thursday and, if approved, the matter will go to the Senate.
