Under the argument of adapting Brazilian regulations to the Global Rules Against Base Erosion – GloBE Rules, Provisional Measure No. 1,262, of October 3, 2024, was issued, which provides for the creation of an Additional CSLL (Social Contribution on Net Income) as a form of complementary taxation, in the image and similarity of the guidelines defined in Pillar 2 of the OECD (Organization for Economic Cooperation and Development) regarding the institution of a Global Minimum Tax on corporate income.
In a brief and simplified summary, MP 1,262/2024 provides for an additional CSLL to be paid in Brazil by companies controlled by large multinational groups that are subject to low taxation.
The additional tax will only apply to multinational groups with annual revenues of €750 million, based on the last four fiscal years. Furthermore, in Brazil, the profit must have been subject to an effective tax rate of less than 15%.
In addition, the taxpayer must also present positive Excess Profits, after excluding from the accounting net profit the Substance-Based Exclusions (eligible payroll costs and book value of eligible tangible assets) in the jurisdiction of Brazil.
Taxpayers who meet the above requirements will have to determine the calculation basis for the CSLL Surplus (Excess Profits), on which the Surplus rate will be levied, which will correspond to the difference between 15% and the Effective Rate.
The Federal Revenue Service has already regulated the aforementioned MP through Normative Instruction No. 2,228/2024, which was responsible for defining several points by delegation of the MP itself, but which may affect the tax burden, and which may be questioned precisely because they violate the principle of legality.
