- The Senate has approved the Provisional Rule (MP) 1185, which changes the taxation of government subsidies.
- The MP targets the ICMS tax benefits, which have been exempt from taxation by the Federal Government.
- Under the new mechanism outlined in the MP, the subsidy amount will be included in the calculation basis of various taxes.
- Taxpayers may prequalify with the Federal Revenue and receive a tax credit for the IRPJ tax.
- This measure increases the tax burden for many taxpayers and revokes the provisions of Law 12,973/2014.
- There are concerns about the legitimacy of this measure and its impact on taxpayers.
- Arguments include violations of the federal pact and reciprocal immunity, as well as violations of the constitutional concept of income and revenue.
- There is also an argument that the new taxation cannot be applied to ICMS benefits instituted before the new Law.
- The Law provides for the possibility of a special arrangement for taxpayers to regularize debts that do not comply with the rules set by Law 12,973/2014.
- The MP also includes modifications to the calculation method of the Interest on Equity (JCP).
Source: klalaw.com.br
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
