Brazilian Government Proposes Tax on Big Tech Companies Starting in 2025
The Brazilian Ministry of Finance has estimated potential revenues of 17.9 billion reais ($3.2 billion) from increased income taxes as part of its 2025 budget proposal, submitted to Congress on Friday.
The proposal projects a primary surplus of 3.7 billion reais ($658 million) for next year.
On Monday, the Ministry of Finance announced that if there is a revenue shortfall, it will present additional proposals to Congress in the second half of this year to tax large tech companies and implement a 15% global minimum tax on multinational corporations to ensure the fiscal target for 2025 is met.
In another bill presented to legislators on Friday, the government proposed changes to the Social Contribution on Net Income (CSLL) and interest on equity payments (JCP). The Ministry expects to collect 58.5 billion reais ($10.4 billion) in tax revenues next year, including 30 billion reais ($5.3 billion) from a new dispute resolution program for large taxpayers, which will be launched in 2025 following an agreement reached this year with the state-owned oil company Petrobras.
Additionally, the Ministry anticipates another 28.5 billion reais from rulings by the Administrative Council of Tax Appeals (CARF), which handles taxpayer administrative cases. The Ministry also projects that correcting tax distortions will add another 20 billion reais in revenue next year.
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