Brazil’s Supreme Court Extends Suspension of Payroll Tax

A justice of Brazil’s Supreme Federal Court extended July 16 the suspension of the country’s primary employer social tax for leading employers.

In May, the government and Brazil’s Congress agreed to continue the suspension of the tax for this year and restore it gradually through 2028. This came in response to an injunction issued by Supreme Federal Court Justice Cristiano Zanin that restored the tax immediately after the suspension was continued through 2027 through a bill approved by Congress.

Zanin then suspended his injunction and gave Congress and the government 60 days to approve compensation for the revenues the government ...