Companies Benefiting from Payroll Tax Exemption Ask for Pix to Pay Taxes

Written by Bruno Teles

Published on 24/02/2023 at 14:50

Pix pague impostos (Foto/divulgação)

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A proposal that was debated in recent years to relieve the payroll of Brazilians gained strength in recent weeks. Representatives of the sectors benefited by the tax relief on the payroll, which expires on December 31 of this year, are mobilizing to defend the creation of a permanent Pix pays taxes on financial transactions.

The idea of Pix Pays Taxes is known as CFM (Financial Contribution on Transactions), and it foresees a rate of 0.11% even for transactions made via Pix. The CFM would mean that all Brazilians would pay 0.11% for each financial transaction made. For example, transferring R$ 100 via Pix would mean paying R$ 0.11; transferring R$ 1,000 would correspond to paying R$ 1.10. The contribution would be deducted at source, just as it happened with the CPMF (Provisional Contribution on Financial Transactions).

The expected result is to reduce companies’ costs with formal hiring and generate more jobs in the country – or prevent layoffs – as currently only 17 sectors are entitled to tax relief.

However, there is resistance to the CFM proposal in Congress and society. Therefore, deputies from the Parliamentary Front for Entrepreneurship (FPE), members of the Unidos Brasil Institute (IUB), representatives of the 17 exempt sectors, and Brasscom (Association of Information and Communication Technology Companies and Digital Technologies) mobilized to defend the project. The group presented an alternative study to PEC 45/2019 (tax reform from the Chamber) in February of this year with the CFM proposal.

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A proposal to create a tax on financial and digital transactions, called CMF or Pix Pays Taxes, has been debated in Congress. If approved, the tax would take effect in February 2023 with a rate of 0.11%.

The proposal for Pix Pays Taxes was presented by representatives of the Parliamentary Front for Entrepreneurship (FPE), members of the Unidos Brasil Institute (IUB), exempt sectors, and Brasscom (Association of Information and Communication Technology Companies and Digital Technologies).

Despite the resistance in society, deputies argue that the CFM should be incorporated into the current tax reform, as it may contribute to the relief of payroll taxes. However, the tax would be earmarked for Social Security and would unify other taxes with a rate of 23.61%.

However, Simone Tebet – currently the Minister of Planning – stated that there are restrictions in the Senate regarding this inclusion in the tax reform. She believes that to approve the reform, it is necessary to eliminate points of divergence, such as the creation of this tax.

Therefore, the chances are low that this measure will be voted on in Congress this year. However, the debate has gained strength in recent weeks amid concerns about the future of tax relief, which ends on December 31 of this year.

Companies Benefiting from Payroll Tax Exemption Ask for Pix to Pay Taxes

A proposal to create a tax on financial and digital transactions, called CMF or Pix Pays Taxes, has been debated in Congress. If approved, the tax would take effect in February 2023 with a rate of 0.11%.

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Companies Benefiting from Payroll Tax Exemption Ask for Pix to Pay Taxes

A proposal to create a tax on financial and digital transactions, called CMF or Pix Pays Taxes, has been debated in Congress. If approved, the tax would take effect in February 2023 with a rate of 0.11%.

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Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

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