The Brazilian Federal Revenue Service (Receita Federal) has officially announced, through Executive Declaratory Act RFB No. 2 of March 21, 2025, the early termination of the Emergency Program for the Recovery of the Events Sector (PERSE). The decision stems from reaching the R$15 billion cap on tax exemptions established by the legislation that began regulating the program’s benefits in 2023.
PERSE was created under Law No. 14,148/2021 with the aim of mitigating the economic impacts of the COVID-19 pandemic on the hardest-hit industries, particularly events, tourism, and food services. The program initially provided for a 60-month exemption from federal taxes, starting from the date the law was enacted.
Taxes Covered Under PERSE
While the program was in effect, eligible companies benefited from exemptions on the following federal taxes:
- Contributions to PIS/Pasep and Cofins (levied on gross revenue);
- Corporate Income Tax (IRPJ); and
- Social Contribution on Net Profit (CSLL) (levied on profit).
Early Termination
Although the program was originally set to run through March 2027, the federal government, via Law No. 14,592/2023, imposed a R$15 billion overall limit on tax exemptions. Once that threshold was reached, the program was to be discontinued. With the publication of the aforementioned Act, the Federal Revenue Service has confirmed that PERSE benefits will no longer apply as of April 2025.
Practical Implications
The termination of these tax benefits means a return to full taxation for affected companies, leading to:
- Increased monthly tax burdens;
- The need to revise financial and tax planning;
- Potential impacts on pricing and operating margins, particularly in cost-sensitive segments.
Impacted Sectors
The end of PERSE directly affects companies in the following industries:
- Events (production companies, concert and trade show organizers, weddings, conferences);
- Tourism (hotels, inns, travel agencies, tour operators);
- Event-related Food Services (bars, restaurants, buffets, catering companies).
Recommendations
In light of these regulatory changes, companies are advised to:
- Update their tax calculations starting from April 2025;
- Review their tax planning and pricing strategies;
- Assess the possibility of pursuing legal action, in specific cases, to discuss any potential vested right to maintain the benefit until the originally scheduled end date.
Our firm is available to evaluate the specific impacts on your business and provide support in adapting to the new tax landscape.