The implementation of this minimum tax seeks not only to increase Brazil’s tax revenue, but also to align the country with international standards in the fight against tax evasion.
It is important to mention that, although the decrees in Brazil are valid immediately, they must be ratified by Congress within a period of four months to remain in force.
REUTERS
The government of Brazil In the last few hours, it issued a decree that establishes a minimum tax of 15% on the profits of multinationals, as reported in the country’s official bulletin.
This measure is part of Brazil’s efforts to find new sources of revenue to achieve its fiscal goals, which include reducing the fiscal deficit to zero, without the need to make drastic cuts in public spending. Authorities argue that this new regulation aligns with global efforts to combat tax evasion.
The decree introduces an additional tax on the Brazilian social contribution on company income (CSLL), in order to ensure that the minimum tax is 15%.
Brazil increases taxes on companies
Government officials had already indicated that this measure was being evaluated as a way to synchronize the country with the fiscal discussions that it leads in its role as president of the G20, while seeking to meet the fiscal objective established for 2025.
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This action is part of Brazil’s adaptation to the Global Rules against Base Erosion (GloBE Rules), developed by the OECD/G20 Inclusive Framework on Base Erosion and Benefit Shifting.
Although the Ministry of Finance has not provided details about the expectations of additional collection that would be generated by this measure, it has been announced that government officials will hold a press conference to address the issue in the short term.
It is important to mention that, although the decrees in Brazil are valid immediately, they must be ratified by Congress within a period of four months to remain in force.
Source: Ambito
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