Marcela Ortega Tavares and Carolina Tavares Rodrigues  On January 1, 2016, the main changes introduced by Law No. 12,546/11 will come into effect, governing the tax relaxation on payroll. Among the novelties are the increased rates levied on gross revenues and the taxpayer′s possibility of choosing the most favorable tax system.

Marcela Ortega Tavares and Carolina Tavares Rodrigues

 On January 1, 2016, the main changes introduced by Law No. 12,546/11 will come into effect, governing the tax relaxation on payroll. Among the novelties are the increased rates levied on gross revenues and the taxpayer′s possibility of choosing the most favorable tax system.

The rates, previously varying from 1 to 2% according to the economic activity, the industry (CNAE) and the manufactured product (NCM) by the taxpayer, may now reach 4.5%.

Thus, taxpayers who previously paid 2% on their gross revenues will now pay 4.5%, except for those providing services relating to (i) call center; (ii) road passenger transport, with a fixed itinerary, municipal and inter-municipal; (iv) railway passenger transport; and (v) subway passenger transport. In all these cases, the applicable rate shall be 3%.

Taxpayers who paid 1% will now pay 2.5%, except for those whose activities relate to: (i) air cargo transport and ancillary services to air cargo transport; (ii) regular air passenger transport and ancillary services to regular air passenger transport; (iii) sea cargo transport in coastal navigation; (iv) sea passenger transport in coastal navigation; (v) sea cargo transport in overseas navigation; (vi) sea passenger transport in overseas navigation; (vii) cargo transport by inland waterways; (viii) passenger transport by inland waterways, on regular lines; (ix) companies performing loading, unloading and storage services of containers in organized ports; (x) road cargo transport; (xi) railway cargo transport; (xii) newspapers and radio and sound and image broadcasting, who will collect 1.5%.

The reference made to "except for those whose activities relate to" – newspapers and radio and sound and image broadcasting is not quite clear. It is important to verify what the authors have actually intended to provide for.

Another innovation is the fact that companies may now choose whether or not to adopt the tax relaxation on payroll system. Therefore, companies may consider whether it is more advantageous to opt for one or the other taxation system. However, this option must always be made in January of each year and cannot be changed during the fiscal year. Exceptionally for the 2016 calendar year, the option for contribution on gross revenues or on payroll may be made at the time of payment of the contribution relating to November 2015.

Thus, companies that are subject to Law No. 12,546/11 shall make an annual projection of their income and their expenses with payroll before the deadline for opting for one of the taxation systems. It will then be possible to estimate more precisely in which of said taxation systems the total disbursement value with contributions will be lower.