Our partner Tatiana Del Giudice Cappa Chiaradia contributed to an article published in Folha de S.Paulo’s “What kind of tax is this?” section on the issue of Provisional Measure No. 1,185, which revoked a decision by the National Congress and increased taxation on large companies that have ICMS tax benefits. As a result, the government’s economic team hopes to raise around R$35 billion from 2024 onwards, the funds needed to try to close the deficit in next year’s budget.

Tatiana explains that the Provisional Measure represents the formalization of a long-standing desire by the federal government to differentiate between investment and costing subsidies, which had been equated in Article 30 of Law No. 12,973/2014, after the enactment of Complementary Law No. 160, reserving from now on the federal benefit only to subsidies understood as investment, as interpreted for years by the Federal Revenue Service.

“I stress the importance of closely monitoring its possible approval in Congress, as its impacts will affect all taxpayers, who have already organized and planned for a scenario that will be totally distorted from 2024 onwards,” says the lawyer.

Read the full article: https://lnkd.in/dmKPr25q