One of the novelties brought about by the Labor Reform, almost ten years ago (2017), is the recognition that bonuses should not be subject to social security contributions. However, when it comes to tax matters, things are not so simple.

Since then, the Brazilian Federal Revenue Service (RFB) has been issuing pronouncements and restricting the circumstances in which bonus payments should not be taxed, while maintaining the requirement for social security contributions in numerous situations.

The Aurélio Dictionary of the Portuguese Language defines “bonus” as a reward or gratuity given in recognition of merit, work performed, or victory in a competition or game. Although it gives the impression of being a gift, the fact is that, in the Brazilian tax reality, the bonus has become a real Greek gift for companies, as by deciding to pay it to their employees and not tax it, they are exposed to the risk of tax audits.

This is because the Brazilian Federal Revenue Service (RFB) limited the concept of bonus to gratuities paid by the employer up to twice a year due to performance exceeding what is ordinarily expected, based on the interpretation of Provisional Measure No. 808/2017. Based on RFB Normative Instruction No. 2,110/2022, the Revenue Service redefined the concept of bonus and began requiring objective proof from the employer of this gratuity in the payment of goods, services, or money to a specific employee or group of employees (excluding individual contributors).

The controversy, since then, has revolved around demonstrating and proving compliance with these requirements demanded by the RFB for the recognition that the bonus payment is outside the scope of social security contributions. And there are several cases of tax assessments demanding taxation.

The administrative decisions require gratuity and occasionality of payment. In cases such as reward cards, for example, taxation was maintained on the grounds that the incentive program would have a remunerative nature because the employee would have knowledge and predictability regarding the periodic payment. Isolated, exceptional, one-off payments, without linkage to salary, upon termination or in raffles, were excluded from taxation. However, programs instituted to motivate, incentive, and/or retain employees through rewards as a company human resources policy had their taxation maintained.

In the Judiciary, decisions also require the presence of the requirements of liberality and contingency, but authorize the incidence of social security contributions when the employee’s ability, performance, enterprise, and/or commitment are rewarded because it would constitute remuneration.

Aiming to guide and resolve discussions and exposure to risks, with the recent Cosit Consultation Solution No. 10/2026, the RFB (Brazilian Federal Revenue Service) raised the level of requirements and clarified the conditions for the non-incidence of social security contributions on bonuses paid to employees at the employer’s discretion. According to the new understanding, the concept of a bonus consists of an occasional gain that does not depend on the employee’s will or performance, granted at the employer’s discretion and without any expectations from the employee. The agency clarified that the mere parameterization of requirements in company regulations, stipulating how the employee will be entitled to the bonus for superior performance, does not negate the employer’s discretion. The provisions of such regulations cannot result from a prior agreement or a general arrangement in a collective bargaining agreement, because it would suppress the company’s autonomy, restricting the concept of discretion and authorizing the incidence of social security contributions.

For the beginning of 2026, although each case is unique, it is expected that this new guidance from the RFB (Brazilian Federal Revenue Service) will bring a little more predictability to companies in the payment of bonuses, aiming to provide much-needed legal certainty in conducting their activities and in rewarding their employees without risk.