Provisional Measure No. 774/2017

Provisional Measure No. 774/2017, published in the Official Gazette of Mar-30-2017, brought changes in the Law No. 12,546/2011, which provides for the payroll exemption.

Law No. 12,546, enters into force with the following changes:

1) two per cent (2%) rate to companies identified in sections III, V and VI of heading of Article 7, as follows:

1.1) collective passengers transport by bus, fixed route, municipal, inter-municipal metropolitan region, intercity, interstate and international framed in CNAE 2.0 classes 4921-3 and 4922-1;

1.2) rail passengers transport, classified in CNAE 2.0 subclasses 4912-4/01 and 4912-4/02;

1.3) metro railway passengers transport, bracketed in CNAE 2.0 subclass 4912-4/03.

2) four point five percent (4.5%)rate for companies identified in sections IV and VII of heading of Article 7, as described below:

2.1) in the construction sector, framed in CNAE 2.0 groups 412, 432, 433 and 439;

2.2) infrastructure construction, framed in CNAE 2.0 groups 421, 422, 429 and 431.

3) press companies and radio broadcasting and sound and image that comes to Law No. 10,610, of December 20, 2002, classified in the classes 1811-3, 5811-5, 5812-3, 5813-1, 5822-1, 5823-9, 6010-1, 6021-7 and 6319-4 of CNAE 2.0 may contribute on revenue gross amount, excluded the canceled sales and unconditional discounts granted to replace the contributions provided for in items I and III of heading of Article 22 of Law No. 8212, 1991.

With the changes introduced by Provisional Measure, the companies that could be previously entitled to the exemption benefit and are now excluded should calculate their social contributions based on payroll, according to items I and III of the heading of article 22 of Law No. 8,212/1991.

The text of Provisional Measure No. 774/2017 shall be effective from July 1, 2017, may be accessed here.