The Senate Plenary approved this Tuesday (20) the proposal that establishes transitional rules for the end of the payroll tax exemption for 17 sectors of the economy, following an agreement between the government and the National Congress. The matter will now be analyzed by the Chamber of Deputies.
The bill approved today, in a symbolic vote, maintains the payroll tax exemption for these sectors in full in 2024 and provides for a gradual re-taxation between 2025 and 2027. The gradual resumption of taxation from 2025 onwards will have a rate of 5% on the payroll. In 2026, 10% will be charged and, in 2027, 20%, when the exemption would end. During the entire transition, the 13th salary payroll will continue to be fully exempt.
For municipalities with up to 156,000 inhabitants, the resumption of social security contributions will also be staggered: by the end of this year, it will be 8% and next year, the percentage will be 12%. In 2026, it will be 16%, reaching 20% in 2027, at the end of the transition period.
Last year, Congress had approved the maintenance of the payroll tax exemption, but President Luiz Inácio Lula da Silva vetoed parts of Law 14,784, of 2023. Congress overturned the veto and the government appealed to the Supreme Federal Court, which gave a deadline until September 11 for the Congress and the Executive sought an agreement on the tax relief.
Compensation measures
After an agreement between the government and Congress, compensation measures were defined for the tax waiver while maintaining the exemption, which were incorporated into the project.
The measures include updating the value of real estate with the Federal Revenue Service, improving mechanisms for transacting debts with federal public agencies and foundations, and measures to combat fraud and abuse in public spending.
*With information from the Senate Agency
