Brazil Lower House Passes Bill to Extend Payroll Tax Exemption

The Brazilian Chamber of Deputies Aug. 30 passed Bill No. 334/23, to extend the payroll tax exemption for 17 sectors of the economy until Dec. 31, 2027. The bill includes measures to: 1) replace the employer’s social security contribution of 20 percent on the payroll, with rates from 1 percent to 4.5 percent on gross revenue, until Dec. 31, 2027; 2) reduce the contribution rate to 1 percent from 2 percent for collective road passenger transport companies; and 3) extend the additional 1 percent rate on the COFINS-import tax, levied on the import of foreign products, for the same period. ...