Brazil - Government alters calculation of certain corporate social security contributions

Global Watch ()

Recently, the Brazilian government created a plan named 'Brasil Maior. This initiative aims to maintain the sustainable growth of the Brazilian economy irrespective of the international crisis. 'Brasil Maior' consists of a set of public policies related to manufacturing, technology, and international commerce. One of the public policies established by the government through Law 12.546/2011 and Decree 7.828/2012 is the reduction of the corporate social security contributions.

The new legislation establishes that companies providing certain services and also companies in specific industrial sectors, should pay social security ('INSS – Instituto Nacional de Seguridade Social') contributions based on the gross revenue instead of based on payroll. The Brazilian government established a schedule, and some sectors may benefit.