ABES, Assespro and Brasscom defend the exemption of the payroll for the ICT sector

Legal Director participated in the Public Hearing
on changes in the sector's exemption
 

 

ABES, Brazilian Association of Software Companies, Assespro, Federation of Associations of Brazilian Information Technology Companies, and Brasscom, Brazilian Association of Information and Communication Technology Companies, adopt a common position in relation to changes in the incidence of employer social security contributions introduced by Provisional Measure no. 669/2015, advocating the maintenance of the current rate of 2% and the mandatory levy on gross revenue.
 

Unlike the countercyclical nature with which it has been considered for several other sectors, the substitution of the tax incidence of the employer's social security contribution, commonly known as payroll exemption, constitutes, in a structuring public policy for IT and ICT services, insofar as it addresses factors inhibiting the growth of the sector, namely, lack of competitiveness due to the burden on labor costs, above-average remuneration, creativity in labor relations, and salary increases at levels above inflation.
 

The policy, which was introduced in 2011 in the IT and ICT services sector, as a pilot sector, has contributed decisively to Brazil's competitiveness, fostering growth with the generation of quality and high-paying jobs, discouraging creativity in employment relationships. and reducing competitive disloyalty vis-à-vis companies that faithfully observe the rules of labor law. 
 

It should also be noted that the tax waiver, including employer social security contributions, personal income tax and FGTS, was eliminated in the second year after the introduction of the system, contributing both to fiscal balance and to an increase in national savings.
 

The associations believe that the continuation of the substitutive taxation system is essential, namely: (i) the maintenance of the current rate of 2% on gross revenue, excluding canceled sales and unconditional discounts granted, and (ii) the mandatory replacement of incidence tax related to the employer's social security contribution, with the return to the tax incidence on the payroll being prohibited.