The Supreme Federal Court (STF) has included in the agenda for the virtual session to be held from August 16 to 23, 2024, a matter of extreme impact on the calculation of social security contributions owed by companies, corresponding to the proposed Reoneração da Folha for the year 2024. This issue has significantly mobilized the judiciary, businesses, and the Legislative Power.
Due to their economic activities, some companies can opt for the collection of the Social Security Contribution on their Gross Revenue (CPRB), thus exempting their payroll. Therefore, the so-called payroll exemption is a tax benefit that allows some companies to replace the payment of 20% of the social security contribution on the payroll with the application of a lower rate on the company’s gross revenue.
This differentiated social security contribution regime was regulated by Law No. 12.546/2011, had its period of validity extended several times, and was set to end in 12/2023. However, due to economic pressure on the matter and with the intention of extending the exemption system again, on 12/27/2023, the Senate President promulgated Law No. 14.784/2023, which extended the CPRB’s validity period until 12/31/2027.
Disagreeing and aiming to increase the tax burden, President Lula vetoed the legal text. Shortly after, the National Congress overturned the presidential veto. Thus, Law No. 14.784/2023 began to take effect in 2024, remaining fully in force to maintain the payroll exemption.
Consequently, the President of the Republic filed Direct Action of Unconstitutionality (ADI) No. 7633, aiming to suspend the effectiveness of the articles of the law that extended the exemption’s validity, seeking the immediate return of the Social Security Contribution on the payroll for all taxpayers.
As soon as the judicial action was distributed to the Supreme Federal Court, the Reporting Minister, Cristiano Zanin, granted the request for an injunction to suspend the law’s effectiveness, which would require CPRB opting taxpayers to immediately collect on their payroll.
However, due to pressure from various sectors and the dangerous economic impact, Minister Zanin himself postponed the effects of his injunction to 07/18/2024, and then to 09/11/2024, during which time legislative action was expected to establish a gradual transition regime for this contribution.
Since then, companies opting for the differentiated regime have been collecting the social security contribution in an exempt manner on their gross revenue. On the other hand, Bill No. 1.847/24 was presented in the Federal Senate, still pending voting, drafted in agreement between the National Congress, Government, and business representatives, providing for the gradual reoneração of the contribution, starting in 2025 and ending in 2028.
However, before the matter is resolved in the Legislative and Executive branches, the Supreme Federal Court included ADI 7633 on the agenda for next week’s session, when it will judge the constitutionality of Law No. 14.784/2023. In other words, the STF will rule on the possibility of collecting the social security contribution for the year 2024 on gross revenue or payroll.
The Tax Law Department of Marins Bertoldi Advogados remains attentive to the developments of the issue and is available to clarify any doubts on the subject and delve deeper into each company’s reality.
By Enrique Grimberg Kohane
