ABES, Abranet, Assespro, Brasscom and Fenainfo have just released a new manifest on the Tax Reform PL, under evaluation in the Federal Senate, in which they ask that the final proposal have “a focus on the future of the country, in order to bring appropriate treatment to the information technology, innovation and digital services sector”. The entities request the inclusion of activities in the digital, Internet, innovation, information technology and IT services sector and similar activities in the reduced rate in 60% of the standard rate (art. 9, § 1).
Below, we list other relevant points of the manifest, which can be downloaded in full here:
– The text approved by the Chamber of Deputies does not allow the crediting of the largest input for the activity – labor. They warn that the approval of a standard rate of 25% will result in an increase in prices for non-VAT-paying end consumers of internet services between 12% and 16% and of software services and IT services between 7% and 11%. This increase will impact the population and companies’ access to technological products.
– Technology has been a driving force of progress and innovation in several nations, demonstrating its ability to boost economic and social development, with a transversal impact on productivity and growth in almost all productive sectors;
– Countries such as the USA, Germany, Canada, South Korea and Israel, which prioritized technological advancement, are examples of the positive impact of policies to stimulate the growth of technology companies, boosting their economies and societies.
– Brazil is the 5th largest market for internet users in the world and 2nd largest average time spent online. But, while Brazilian culture is favorable to the technology market, the lack of a more favorable economic and regulatory environment has been restricting its full development.
– the IT Sector brings together more than 135 thousand companies, around 30 thousand dedicated only to software (2022) and around 75% opting for Simples Nacional. The sector contributed with 2.7% of the national GDP, being the 14th market for IT software and services, with US$ 20 billion investments in 2022. There are more than 1.67 million direct jobs, with an estimated 700 thousand open positions until 2025 and with an average salary almost 3 times higher than the national average salary.
To download the full manifesto, click here.
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