Our lawyers Victoria Salles and Julia Dias Gonçalves have written an article, published in Capital Aberto, which addresses a controversial discussion involving the possibility of the extinction of Interest on Shareholders’ Equity (JCP), in view of the tax collection changes envisaged by the Tax Reform.
‘This is a shareholder remuneration instrument provided for in Brazilian legislation since 1995. It was created as an ingenious solution to compensate for the high tax burden on companies’ profits, allowing them to remunerate their partners or shareholders more efficiently, incentivising capital contributions and allowing the amounts paid to be deducted from the basis for calculating Corporate Income Tax (IRPJ) and Social Contribution on Net Profits (CSLL), subject to certain limits. However, the instrument that was once intended to create a more favourable scenario for taxpayers now looks like a big question mark. It’s not just today that the federal government has indicated that the future of JCP may be under threat – and the issue here is purely one of collection.’
Read more: https://lnkd.in/drBHWH5r
Translated with DeepL.com (free version)