Recently sanctioned, Law 14.973/24, among other measures, provides for the temporary and gradual exemption of payroll, reducing labor charges for companies in sectors chosen as strategic.
The payroll tax exemption consists of replacing the base for the employer’s social security contribution on payroll(CPP), provided for in article 22 of Law No. 8.212/1991, with a levy on the value of gross revenue (Social Security Contribution on Gross Revenue – CPRB instituted by Law No. 12.546/2011).
For the purposes of the CPRB, gross revenue is generally considered to be the amount received from the sale of goods and services in transactions on its own account or on behalf of others, as well as income of any other nature earned by the legal entity, regardless of its name or accounting classification.
The legal text provides for measures to compensate for the loss of revenue resulting from the temporary exemption from payroll taxes. The compensation measures include, for example, the reopening of the RERCT (Special Regime for Exchange and Tax Regularization); the updating of the cost of real estate and the declaration of tax incentives; the increase in PIS/Cofins-Import; the renegotiation of debts through the Desenrola Agências Reguladoras program (equating corporate debts with regulatory agencies); as well as actions to combat fraud and abuses in public spending.
Among the main sectors benefiting from the exemption areindustry (leather, footwear, clothing, textiles, animal protein, machinery and equipment);services (information technology, call centers, communications); transport (road freight transport, urban road passenger transport and metro rail) andconstruction (civil construction and heavy construction).
The exemption allows companies to replace the CPP (20% of employees’ salaries) with a CPRB with rates ranging from 1% to 4.5%, depending on the sector and the type of service provided.
As of January 1, 2025 and until December 31, 2027, the company that opts for the CPRB must sign an agreement committing itself to maintaining an average number of employees equal to or greater than 75%, using the average for the immediately preceding year as a comparison. In the event of non-compliance, the company will not be able to take advantage of the CPRB from the year following non-compliance.
The tax cuts will be gradual and will last until 2028.
In 2024, companies that fit in will be exempt from the social security contribution and will keep the contribution on turnover between 1% and 4.5%.
The social security contribution rate in 2025 will be 5%, with a reduction in the rate on turnover to between 0.8% and 3.6%. In 2026, the social security contribution will rise to 10% and the rate on turnover will fall to between 0.6% and 2.7%. In 2027, the social security contribution will be 15%, while the contribution on turnover will be between 0.4% and 1.5%.
The full re-monetization of the payroll in 2028, with the return of the 20% social security contribution and the end of the CPRB.
During the transition period (2025 and 2027), for the purposes of calculating the amount due, the CPP will not be levied on the 13th salary.
It is essential, however, that the company makes a careful analysis before adhering to the Law, since depending on the branch of activity, the gross turnover may be high, while the need and use of labor may be low, so that the proposed trade off ends up not being suitable for a company with these specific characteristics.