Brazil: Federal court exempts stock option transactions from social security contributions

Global Watch ()

Recently, a Brazilian court that judges federal contributions and tax issues concluded that a local company is not obligated to collect social security contributions on stock option transactions. The court at issue was the Tribunal Regional Federal (TRF) - da 3a. Região and it was the first time that this subject was discussed in that court. Although not definitive or binding on all taxpayers, the decision may indicate a new trend with respect to future judicial decisions.