With the overthrow of the presidential veto by the National Congress in March this year, Law No. 14,148/2021, among other measures, established a reduction to 0% (zero percent) of the IRPJ, CSLL and PIS and COFINS, on the results earned by legal entities in the events sector for a period of 60 months.
There are five years of zero rate, which results in the absence of payment of these taxes for the entire period.
Because of this, taxpayers in the sector must carefully observe the established reduction, so that they can immediately enjoy its effects and not pay taxes improperly.
Legal entities, including non-profit entities, that carry out the following economic activities, directly or indirectly, are considered to belong to the events sector:
– Holding or marketing congresses, fairs, sporting, social, promotional or cultural events, business fairs, concerts, parties, festivals, symposia or shows in general, event houses, social and children’s buffets, nightclubs and entertainment venues;
– Hospitality in general;
– Administration of movie theaters;
– Provision of tourist services; and,
– Car rental companies (addition made by Ordinance ME nº 7.163/2021).
It is worth noting that, in addition to the aforementioned tax exemption, the program also provides for compensation for companies that had a 50% reduction in revenue proven between 2019 and 2020, which will be based on expenses with the payment of employees during the period of the pandemic. to receive the subsidy.
Our team is at your disposal for any further clarification.
Ferraz de Camargo Advogados
