Brazilian Congress struck down the veto on payroll exemption for 17 areas

On November 4, 2020, the Brazilian Congress struck down the presidential veto to extend, until December 31, 2021 (it was originally at the end of 2020), the payroll exemption for 17 economic areas - services such as technology, footwear, machinery, call center and communication, textiles, construction and companies that operate in public transport of passengers, among others.

The system enables companies to pay rates from 1% to 4.5% on gross revenue, instead of 20% on payroll.

The publication of the struck down of the veto makes the extension of the taxation system valid for the 17 economic areas that may opt for payroll exemption until December 31, 2021. However , according to the news released in the press, the Federal Government plans to appeal to the Supreme Court against the veto struck down on exemption.