Last week, on September 16, 2024, President Lula sanctioned Law No. 14.973/2024, originating from Bill No. 1.847/2024. Among other provisions, the law extends the payroll tax exemption through the Social Security Contribution on Gross Revenue (CPRB) until December 31, 2024, with the gradual re-oneration of payroll taxes.
The payroll tax exemption regime, through the CPRB, applies to 17 economic sectors and to municipalities with up to 156,000 inhabitants.
Initially, the payroll tax exemption regime was proposed by Law No. 12.546/2011, with an immediate re-oneration scheduled for December 31, 2014. However, after numerous legislative, executive, and judicial processes that led to several postponements of the previously established deadline, Law No. 14.784/2023 extended the exemption until the end of 2027.
Nevertheless, the President of the Republic filed Direct Action of Unconstitutionality (ADI) No. 7633 with the Federal Supreme Court (STF), aiming to declare certain provisions of the 2023 law unconstitutional.
In light of efforts between the legislative and executive branches to reach a consensus on the gradual re-oneration of payroll, a deadline of September 11, 2024, was granted for the resolution of the matter through Bill No. 1.847/2024.
As a result, the bill was approved by the Senate in August. Just before the expiration of the deadline granted by the Supreme Court, the Office of the Attorney General (AGU) requested an extension of three more business days in the ADI to complete the legislative processes in the Chamber of Deputies and secure Presidential approval.
Consequently, the bill was approved by the Chamber of Deputies on September 11, and on September 16, Law No. 14.973/2024 was sanctioned and published. This law maintains the payroll tax exemption regime through the Social Security Contribution on Gross Revenue (CPRB) until December 31, 2024.
Thus, there will be a gradual re-oneration of payroll from 2025 until 2027, as follows:
• From January 1 to December 31, 2025: a) 80% of CPRB rates; and
b) 25% of payroll social security contribution rates.
• From January 1 to December 31, 2026: a) 60% of CPRB rates; and
b) 50% of payroll social security contribution rates.
• From January 1 to December 31, 2027: a) 40% of CPRB rates; and
b) 75% of payroll social security contribution rates.
Thus, full re-oneration of the payroll tax will occur in 2028.
The Tax Law Division at Marins Bertoldi Advogados remains vigilant about the developments of this issue and is available to address any questions and delve into the topic as it pertains to each business context.
By Enrique Grimberg Kohane
