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TAX REFORM

The Software and IT Services Sector is a strategic sector of a nation. Whether in the development of public policies or in the creation of value for products and services offered in the market, the Software and IT Services Sector is transversal to the creation of wealth in a country.

The sector is not against tax reform, but we believe that we can make our share of contribution in a particular way, which is why we have listed seven reasons and seven challenges so that technology is treated in an exceptional way, as well as health, education, collective public transport, regional aviation and rural production.

ABES understands the importance of simplification of tax legislation with a view to reducing the Brazil Cost, simplification and greater legal security of relations between the Tax Authorities and companies, which will certainly result in improved national competitiveness.

However, ABES considers that the final report approved by the Federal Senate does not recognize the transversality and importance of information technology for the Brazilian economy and, considering that the approved text does not allow the crediting of the largest input: labor, ABES predicts that, depending on the rate, PEC 45/2019 will impact the increase in prices to the final consumer between 12% and 16% for internet services and from 7% to 11% for software and IT services.

ABES will continue its efforts to ensure four fundamental points in Tax Reform:

1

Appropriate treatment for the software and IT services sector: inclusion in the reduced rate of 60%;

2

ensure full credit also for goods and services acquired for own use and for fixed assets;

3

guarantee the right to offset the IBS/CBS regardless of proving that the tax was collected in the previous phase(s);

4

set the starting date for the 60-day period for refund/compensation of credits accumulated by companies.

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