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Social Contribution on Net Income: higher rates for financial and insurance sectors
On September 5, Law No 14,446/2022 was published, providing for a temporary 1% increase in the rates of the Social Contribution on Net Profit (CSLL) for financial institutions and for insurance and capitalization companies, effective from August 1 to December 31, 2022.
Resulting from Provisional Decree No 1,115/2022, the statue aims at increasing tax revenue and maintaining the budget balance at the Federal level.
What will the CSLL rates be?
Until August 1, the CSLL rate for banking institutions was 20%, whereas private insurance and capitalization companies, as well as other legal entities from the financial sector, were taxed at a 15% rate.
Following the Act’s publication, all those legal entities had a 1% increase on their CSLL rates, as shown in the table below:
Before August, 2022 |
After August, 2022 |
Legal Entities |
|
15% |
16% |
|
|
20% |
21% |
|
In other words, the new rates have been in effect since August 1, 2022, due to the publication of Provisional Decree No 1,115/2022, but now that the act has been voted into law, the tax increase has been firmly cemented until December 31 of this year.
Companies subject to annual taxable income should make sure to apply the previous rates when calculating the taxes due from January to July, while keeping the new rates for the period set between August and December.
As for companies that perform their calculations according to their quarterly taxable income or under the presumptive profit method, they should be mindful when determining taxes pertaining to the 3rd quarter of 2022, as they should apply the previous 15% or 20% rates - as the case may be - for July, and the higher 16% or 21% rates for August and September, maintaining the latter rates for the 4th quarter.
Tax management in good standing
DPC has a team prepared to provide tax management support for companies that need to calculate and pay their Social Contribution on Net Profit, instructing them on the best practices while ensuring tax compliance. You can rely on this support: dpc@dpc.com.br.
How DPC may help your company?
Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail dpc@dpc.com.br
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Social Contribution on Net Income: higher rates for financial and insurance sectors
On September 5, Law No 14,446/2022 was published, providing for a temporary 1% increase in the rates of the Social Contribution on Net Profit (CSLL) for financial institutions and for insurance and capitalization companies, effective from August 1 to December 31, 2022.
Resulting from Provisional Decree No 1,115/2022, the statue aims at increasing tax revenue and maintaining the budget balance at the Federal level.
What will the CSLL rates be?
Until August 1, the CSLL rate for banking institutions was 20%, whereas private insurance and capitalization companies, as well as other legal entities from the financial sector, were taxed at a 15% rate.
Following the Act’s publication, all those legal entities had a 1% increase on their CSLL rates, as shown in the table below:
Before August, 2022 |
After August, 2022 |
Legal Entities |
|
15% |
16% |
|
|
20% |
21% |
|
In other words, the new rates have been in effect since August 1, 2022, due to the publication of Provisional Decree No 1,115/2022, but now that the act has been voted into law, the tax increase has been firmly cemented until December 31 of this year.
Companies subject to annual taxable income should make sure to apply the previous rates when calculating the taxes due from January to July, while keeping the new rates for the period set between August and December.
As for companies that perform their calculations according to their quarterly taxable income or under the presumptive profit method, they should be mindful when determining taxes pertaining to the 3rd quarter of 2022, as they should apply the previous 15% or 20% rates – as the case may be – for July, and the higher 16% or 21% rates for August and September, maintaining the latter rates for the 4th quarter.
Tax management in good standing
DPC has a team prepared to provide tax management support for companies that need to calculate and pay their Social Contribution on Net Profit, instructing them on the best practices while ensuring tax compliance. You can rely on this support: dpc@dpc.com.br.
