CSLL payable by financial institutions increased from 15% to 20%
As reported in Special Edition 90 of our Tax Newsletter, Provisional Measure 675, published on May 22, 2015, increases the rate of the Social Contribution on Net Profits (CSLL - Contribuição Social sobre Lucro Líquido, one of Brazil's corporate income taxes) payable by financial institutions from 15% to 20%. The rate hike affects private insurance and savings companies, banks, securities distributors, currency brokers, securities brokers, financing, loan and investment companies, real estate credit companies, credit card administrators, financing leasing companies, credit cooperatives, and savings and loan societies.
The provisional measure will come into effect on September 1, 2015.
PIS and COFINS on foreign exchange gains reduced to zero
On May 20, 2015, the federal government published Decree 8.451, which (i) zero-rates the social contributions PIS and COFINS attaching to gains resulting from fluctuations in foreign exchange rates, and (ii) provides that whenever a "high fluctuation in the Brazilian real exchange rate" occurs - defined as a variation of more than 10% in the value of the U.S. dollar - corporate taxpayers can, in the following month, switch from the cash method to the accrual method of accounting, or vice-versa, for the purpose of recognizing foreign exchange gains or losses. See Special Edition 89 of our Tax Newsletter for more information.
Changes to rules for listing assets available as security and precautionary attachment of assets
Instruction (Instrução Normativa) 1.565, issued by the Federal Revenue Service of Brazil (RFB - Receita Federal do Brasil) on May 11, 2015, makes changes to the rules for requiring tax debtors to submit a list of assets available as security and for seeking precautionary attachment of assets, but does not change the amount of the tax debts needed to trigger the procedures. Click here to read more.
RFB holds public consultation on taxation of net earnings and gains in the financial and capital markets
The RFB disclosed, for comment by the public, draft Instruction that will govern taxation of net earnings and gains in the financial and capital markets, revoking the current Instruction 1.022/2010.
The draft Instruction seeks to consolidate legislation and regulations issued since 2010, and to deal with a number of specific points, such as (a) conditions for the tax exemption available to individuals on earnings distributed...