This Wednesday, the Senate approved a project that reduces federal tax benefits in several sectors by 10% and increases taxation on betting, fintechs and interest on equity (JCP).
The text, which had been approved a few hours earlier by the Chamber of Deputies, is currently being approved by President Luiz Inácio Lula da Silva. The reductions will not reach constitutional immunities, such as religious entities, political parties and books, and will have other exceptions.
In an interview with reporters Tuesday evening, before the final approval, Finance Minister Fernando Haddad said the ministry presented scenarios for the construction of the project so that the fiscal gain would be 20 billion reais per year, enough to close the 2026 budget.
Warren Rena’s calculations, however, indicate a net income (after transfers from states and municipalities) of 9.7 billion reais in 2026, taking into account the flexibility provided in the text and the legal deadline of 90 days for the reductions to take effect.
The reductions will concern benefits relating to PIS/Pasep, Cofins, Corporate Income Tax (IRPJ), the Social Contribution on Net Profit (CSLL), the Import Tax, the Tax on Industrialized Products (IPI) and the Social Security Contribution.
The way in which the reduction will be applied will depend on the delivery model, and there may be an additional rate, an expansion of the tax calculation base, a limitation of tax credits, among other possibilities provided for in the project.
During the process, parliamentarians decided to maintain benefits such as the exemption from the payroll in sectors of the economy, which already have a period of gradual reduction until their extinction, Prouni tax expenditures and those linked to the industrial policy of information and communication technologies and semiconductors.
The approved text also determines that if the total value of tax incentives exceeds the equivalent of 2% of gross domestic product (GDP), the granting, expansion or extension of the benefits will be prohibited.
TAX INCREASE
The text also provided for tax increases. The rate on gross income from odds betting will increase from 12% currently to 13% in 2026 and 14% in 2027, reaching 15% in 2028, with half of this increase going to social security and the other half to health care.
Another point is the increase from 15% to 17.5% of the income tax levied on the interest on equity distributed by companies to partners.
The text also increases the Social Contribution on Net Profit (CSLL) on certain financial institutions, with gradations.
Payment institutions, over-the-counter market managers and stock exchanges, among others, will see their tax rate increase from 9% to 12% until December 2027 and to 15% from 2028. Credit, financing, investment and capitalization companies will receive 17.5% until December 31, 2027, compared to 15% currently, and 20% from 2028.
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