By Janini Denipoti and Mariana Araújo Lopes Silva
On May 11, 2026, the Chamber of Deputies approved the urgency regime for Complementary Bill – PLP No. 100/2021, which proposes the exclusion of payroll and labor charges from the ISS tax calculation basis in labor supply contracts (Article 7 of Complementary Law No. 116/2003).
With the approval of the urgency regime, the bill may now be directly scheduled for voting in the Chamber’s plenary session, without the need for prior analysis by thematic committees, thereby accelerating its progress through Congress.
Currently, municipalities levy ISS on the total value of the services rendered, including companies’ expenses related to salaries and labor charges of employees involved in the execution of the contract.
PLP 100/21, on the other hand, seeks to limit taxation solely to the company’s remuneration for the services rendered, excluding from the ISS tax base other expenses such as salaries, FGTS, vacation pay, 13th salary, employer social security contributions (INSS), and severance payments.
The rationale behind the proposal is based on the interpretation that ISS should apply only to the remuneration earned from the provision of services, that is, to the economic expression of the service provider’s activity, consequently excluding the operational costs necessary for contract execution, since their inclusion increases the tax burden and raises the cost of formal employment hiring.
For service companies with a high volume of allocated labor, especially in the outsourcing, cleaning, security, maintenance, and temporary work sectors, the approval of PLP 100/21 may represent a reduction in the ISS tax burden, a decrease in the tax cost of hiring employees, and improved cash flow in long-term contracts.
It is important to note that the proposal still depends on approval by the plenary of the Chamber of Deputies and the Federal Senate (by absolute majority, as it is a complementary law), before proceeding to presidential sanction.
The Tax Law Department of Marins Bertoldi Advogados will closely monitor the developments regarding the processing of PLP 100/21 and remains fully available to address any questions.
