ABES (Brazilian Association of Software Companies) aims to contribute to the construction of a more digital and less unequal Brazil, in which information technology plays a fundamental role in the democratization of knowledge and the creation of new opportunities for all. In this sense, it aims to ensure a business environment conducive to innovation, ethical, dynamic, sustainable and globally competitive, always in line with its mission to connect, guide, protect and develop the Brazilian information technology market.
Currently, the Association represents about 2,000 companies, 77% of which are micro and small companies, which account for approximately 85% of revenues in the software and services sector in Brazil, distributed in 24 States and the Federal District, responsible for generating more than 232 thousand direct jobs and an annual turnover of R＄92 billion in 2022.
Although it is still not possible to define the percentage increase, as the rate has not yet been defined, ABES manifests itself regarding the current text of the Tax Reform:
1. Risk of judicialization: The text is not clear, mainly referring to the framework of the differentiated rate, and norms regarding the compensation of credits, who can and who cannot, the central point of the reform, leading to a series of judicial discussions.
2. High risk for micro and small companies, which represent 77% in the sector: companies that purchase goods and services from companies classified in the simple regime will not be able to take full credit for tax compensation, a fact that drives the acquisition or hiring of companies that are not in Simples, which may reflect on the employability of the micro and small business sector.
3. Significant increase in the cost of operation of Brazilian companies that develop software because they do not have inputs that allow credit compensation, due to the fact that the biggest input is payroll and charges and these expenses do not allow taking credit for purposes of calculation of IBS/VAT.
4. End users, individuals, as well as the financial sectors, government and third sector institutions that will have an increase in the cost of acquisitions and hiring of technology in view of the higher tax and will not be able to pass on the tax because they are at the end of the chain;
5. The use of technology is transversal, the increase in its acquisition cost will impact all segments, directly reducing the ability to innovate and the level of competitiveness, society and the nation.
6. We maintain constant articulation in the legislative power regarding our demands in the sense of contributing with regulatory frameworks that mean improvements and innovations for the social, economic and technological sectors of the country. The acquisition and hiring of IT with higher tax will impact all segments, directly reducing the ability to innovate and the level of competitiveness, society and the nation.
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