Infographic: What PEC 45/2019 approved in and what remains to be discussed?

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Taxation of profits and dividends: legislative change

In Brazil, the distribution of profits and dividends calculated based on the results calculated by the companies is not subject to income tax. In practice, corporate entities tax their profit with a nominal rate, as a rule, at the rate of 34% (income tax “IRPJ”, its additional IRPJ and social contribution on net profit “CSLL”), but their distribution to domestic partners and shareholders is exempt, causing no further taxation. This exemption originates from a legislative change in 1995, with the enactment of Law 9249/95, which…

Law created during the pandemic could be a shortcut to preserving jobs in Rio Grande do Sul

In a comment to InfoMoney, partner Alexandre Fragoso Silvestre talks about law 14.437, created during the pandemic, which could be a shortcut to preserving jobs in Rio Grande do Sul. “Thanks to the law, many jobs were preserved and companies were able to keep their cash flowing. Unfortunately, the tragedy that is now striking the state of Rio Grande do Sul is also very big and will certainly depend on all help to recover,” Alexandre recalls. Check out the full story at https://www.infomoney.com.br/minhas-financas/lei-criada-na-pandemia-pode-ser-atalho-para-preservar-empregos-no-rs/

Fact-checking STJ ruling does not impose taxes on individual income tax refunds

Coordinator Gustavo de Toledo Degelo commented to Reuters on the STJ decision that upheld the levying of PIS and COFINS on the corrected amounts of taxes returned to taxpayers. “It was already an understanding unfavorable to the taxpayer and favorable to the tax authorities that the STJ decided to unify and standardize in order to leave no doubt. The STJ maintained its understanding and now other judges must apply this STJ decision: PIS and Cofins are levied on the Selic portion of the amounts returned…