As some countermeasures to address the Covid-19 impact to economy, the Brazilian Congress is current considering a new bill that could rise the tax on Brazilian financial institutions’ profits in 30%.
It is called Social Contribution on Profits (CSLL) which for financial institutions is already high (20%), arriving in 50% if the bill passes. And it does not take into account the Corporate Tax on income, which is another 25% on the income.
The financial sector is comprehensively concerned. The bill’s proposal is still being debated at the Congress and it will certainly be subject to intense discussions with banking sector.
In Brazilian system, if certain taxes are raised, the new rates can only be charged in the subsequent fiscal year (from January 1st), while others can be charged immediately or within three months after become effective (which is the case of such Contribution on Profits if approved).
