On October 3, 2024, Provisional Measure (MP) 1,262 was published, introducing a Surtax on the Social Contribution on Net Profit (CSLL) aimed at multinationals headquartered in Brazil. This measure seeks to align Brazil with the Global Anti-Base Erosion Rules (GloBE Rules), which aim to establish a global minimum taxation on the profits of large multinational corporations.
The main goal of the MP is to ensure an effective minimum tax rate of 15% on the profits of multinational groups with annual revenues of at least 750 million euros. If the multinational group pays less than this percentage, the CSLL Surtax will be due to reach the global minimum. This tax applies only to companies with significant foreign operations and with an effective taxation rate below the stipulated threshold.
Calculation and Payment
The MP establishes that the CSLL Surtax must be calculated and paid by the seventh month after the end of the fiscal year. Normative Instruction RFB No. 2,228/2024 regulates the form of calculation and payment, in addition to defining taxable profits and the methodology for calculating the effective rate that complies with the GloBE Rules.
Global Rules and International Context
The creation of this surtax aligns with the international movement led by the OECD and G-20 countries, which adopted the GloBE Rules to prevent harmful tax competition between nations. The idea is to ensure that multinationals pay a minimum tax on their profits, regardless of where they operate, protecting the tax base of countries that adopt these rules.
Companies will be required to provide all the necessary information for the correct calculation of the CSLL Surtax. Failure to provide information or delays in submission will subject companies to fines. The MP stipulates a penalty of 0.2% of the company’s total annual revenue per month of delay, capped at 10% of the total, or a maximum amount of R$ 10 million. In the case of incorrect or omitted information, a fine of 5% will be applied to the omitted amount, with a minimum of R$ 20,000.
Public Consultation
The Federal Revenue Service has opened a public consultation, valid until November 10, 2024, regarding the regulation of the CSLL Surtax. The participation of interested parties is encouraged to ensure clarity and legal certainty in the application of these new tax rules.
MP 1,262/2024 marks an important step in adapting Brazilian tax legislation to international standards, ensuring that large multinational corporations contribute fairly, without tax distortions. Although the measure still needs to be converted into law by the National Congress, its implications are significant for both the global and national tax environments.