Tax Reform: understand the approval of the basic text

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After decades of waiting and countless proposals that never came to fruition, the Tax Reform was approved by the Chamber of Deputies in July of this year, with a significant vote, and now goes to the Senate for analysis.

The approved base text is the result of a convergence of aspects of the texts of PECs 45 and 110 , arriving at a final version after several substitutes. Thus, the Tax Reform project that will be voted on in the Senate underwent negotiations and insertions that aimed to meet several demands of the federated entities and the desires of some market sectors.

It is important to emphasize that we are facing a consumption gambling data singapore tax reform, which covers, at the federal level, the Tax on Industrialized Products (IPI), the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (COFINS).

At the state and municipal levels, it involves the Tax on the Circulation of Goods and Services (ICMS) and the Tax on Services of Any Nature (ISSQN).

Unification of taxes
With the aim of simplifying the national tax system, one of the pillars of the Tax Reform is the unification of taxes, so that IPI, ICMS, ISS, PIS and COFINS will give way to a tax administered by the Union and a tax whose administration will be divided between the States and Municipalities.

Thus, the adopted model is called Dual VAT, represented by CBS (Federal) and IBS (State and Municipal). Both taxes will have a series of characteristics in common, including identity of taxable events, calculation bases, hypotheses of non-incidence, passive subjects, immunities, specific, differentiated or favored taxation regimes, in addition to non-cumulative and crediting rules.