The economic team’s goal is to raise BRL 10.5 billion in 2024; the government also changed the MP’s ruling governing STJ’s decision, with an eye to extra revenue
BRASÍLIA – On the same day as the presentation of the 2024 budget to the National Congress, the government published the last two measures that will make up the economic team’s collection package – both focused on corporate taxation, such as the anticipated OR Estadao. The challenge for the Ministry of Finance is to guarantee an additional R$168 billion next year to bring the public deficit to zero, as established in the new fiscal framework.
One of the texts is a bill that eliminates the deductibility (possibility of deducting the taxes owed) of the so-called Interest on capital (JCP). If approved by parliamentarians, the text will enter into force on 1 January 2024 and could raise R$ 10.5 billion according to official estimates.
The JCP is a tool used by large companies to remunerate shareholders. It allows the distribution of profits to be classified as an expense and therefore deducted from income tax (IR) and social contribution on net income (CSLL).
The government’s objective, by targeting this instrument, is to attack the aggressive tax planning carried out by large companies of the so-called real economy to pay less taxes.
“There is greater maturity in relation to the taxation of funds; for this they have constitutional urgency (JCP PL has no urgency). The Treasury’s concern with JCP is about cases of abuse of this tool,” said Finance Ministry Executive Secretary Dario Durigan. “And there are other cases where attention needs to be paid, for example with the banking sector, which has peculiarities, and it is necessary to have sensitivity to bring this discussion to Congress”.
AS showed OR Estadaothe economic group recognizes that, in the case of banks, there is a concern not to make credit more expensive, since financial institutions have a different regulatory treatment.
MP on the STJ’s decision
The second text released this Thursday is an Interim Measure (MP) to regulate a recent decision by the Superior Court of Justice (STJ) on taxes to be collected by businesses. As this is a Congressman, it takes effect immediately, and Congress has 120 days to approve the matter. Otherwise it loses its validity.
The House is relying on an April decision by the STJ, which bars the deduction of state benefits from federal taxes, except in the case of investments. Companies will soon have to pay more taxes. The expectation is that funding will reach R$ 35.3 billion.
The government’s objective is to regulate this decision of the STJ, specifying the rules that will come into effect from now on in the collection of these taxes.
“The goal is to guarantee legal security. There are rules that calibrate financial credit, so that companies can take advantage of this credit, but with control. Based on the practices used by the OECD”, says the executive secretary of the Ministry of Finances, Dario Durigan.
OR Estadao found that the interlocutors of the Ministry of Finance have sought the mayor, Arthur Lira (PP-AL), to align the presentation of the proposal through a deputy, which takes effect immediately. The legislative instrument has been the subject of harsh criticism by Lira, who prefers the procedure through PL, to give more prominence to the deputies.
Source: Terra
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