Law No. 14,859/2024: amending the Perse rules for the period 2024 to 2026.

The Emergency Program for the Resumption of the Events Sector - Perse was created in 2021 to help companies linked to the events sector - the activity most affected by the COVID-19 pandemic - by reducing the IRPJ, CSLL, PIS and COFINS rates to zero for a period of five years, subject to certain conditions.

However, at the end of 2023, the Federal Government issued Provisional Measure No. 1,202/2023, intending to end the benefit, following suspicions of fraud.

Now, in a new amendment, the President of the Republic sanctioned, on May 22, the Law 14.859/2024, which amends the Perse Law - Law No. 14.148/2021 and repeals provisions of Provisional Measure No. 1.202/2023, which intended to extinguish the benefit.

LEARN WHAT CHANGES WITH THE NEW LAW

1. Reducing the scope of the program:

Despite re-establishing Perse, the new law has reduced the number of activities that can benefit from the program.

Previously, the program covered 44 business activities linked to the events sector; now, only 30 activities can take advantage of the benefit.

These were the 14 activities excluded from Perse:

Passenger transport service - car rental with driver (CNAE 4923-0/02); Collective passenger road transport, under municipal charter (CNAE 4929-9/01); Collective passenger road transport, under charter, intercity, interstate and international (CNAE 4929-9/02); Organization of excursions in own road vehicles, municipal (CNAE 4929-9/03); Organization of excursions in own road vehicles, intercity, interstate and international (CNAE 4929-9/04); Maritime cabotage transportation - passengers (CNAE 5011-4/02); Long-distance maritime transportation - passengers (CNAE 5012-2/02); Water transportation for sightseeing tours (CNAE 5099-8/01); Hostels, except welfare (CNAE 5590-6/01); Campgrounds (CNAE 5590-6/02); Pensions (lodgings) (CNAE 5590-6/03); Other lodgings not specified above (CNAE 5590-6/99); Advertising film production (CNAE 5911-1/02); Museum activities and the operation of historical sites and buildings and similar attractions (CNAE 9102-3/01).

This measure could lead to a wave of lawsuits by excluded companies, due to the revocation of a tax benefit that was conditional and granted for a fixed period.

Only companies whose main CNAE code or preponderant activity on March 18, 2022 was one of the 30 economic activities are eligible for the benefit.

Previously, it was possible to use Perse for activities with a secondary CNAE code.

In order to determine the preponderant activity, the preponderant activity is the activity whose gross revenue from its exercise is the one with the highest absolute value, determined among the CNAE codes that make up the legal entity's total gross revenue.

Perse does not apply to companies opting for the Simples Nacional regime, or which, in the 2017 to 2021 calendar years, have not carried out any operational, non-operational, equity or financial activities, including investments in the financial or capital markets, in all their CNAE codes.

2. Limitation of the fiscal cost:

Perse will be automatically revoked the following month if the tax expenditure limit of R$15 billion is reached, which will be monitored by the Federal Revenue Service.

3. Extension of the deadline for registration with Cadastur:

Under the new law, activities subject to prior registration with Cadastur will be able to benefit from Perse if they have regularized their situation with Cadastur between 18/03/2022 and 30/05/2023. This requirement applies to the following activities:

Restaurants and the like (CNAE 5611-2/01); bars and other establishments specializing in serving drinks, without entertainment (CNAE 5611-2/04); bars and other establishments specializing in serving drinks, with entertainment (CNAE 5611-2/05); travel agencies (CNAE 7911-2/00); tour operators (CNAE 7912-1/00); activities of botanical gardens, zoos, national parks, ecological reserves and environmental protection areas (CNAE 9103-1/00); amusement parks and theme parks (CNAE 9321-2/00); activities of associative organizations linked to culture and art (CNAE 9493-6/00).

4. Limitation for companies under the Real Profit regime:

Taxpayers subject to the Real or Arbitrated Profit tax regime will not be entitled to a zero rate for IRPJ and CSLL from 2025 onwards, only for PIS and COFINS.

5. Practical implications of the Provisional Measure that repealed Perse:

Companies that used to benefit from Perse and started to pay PIS, COFINS and CSLL as a result of Provisional Measure 12.202/2023 may offset the amounts paid during this period against their own debts, due or falling due, relating to taxes administered by the Brazilian Federal Revenue Service, or be reimbursed in kind upon request.

6. Prior qualification required:

In order to use the benefit, the company must first register via the e-CAC portal between June 3 and August 2.

When making the application, the company's articles of incorporation and amendments must be submitted, as well as other documents and information required in the electronic application form.

By September 1, 2024, the Internal Revenue Service will have given its opinion on the application. If the IRS does not respond within 30 days of the application being filed, the company will be considered tacitly entitled to use the benefit.

7. Economic activities currently covered by Perse:

Hotels (5510-8/01); apart-hotels (5510-8/02); catering services for events and receptions - buffet (5620-1/02); film exhibition activities (5914-6/00); creation of stands for fairs and exhibitions (7319-0/01); photographic production activities, except aerial and underwater (7420-0/01); filming of parties and events (7420-0/04); professional agency for sports, cultural and artistic activities (7490-1/05); rental of recreational and sports equipment (7721-7/00); rental of stages, roofs and other structures for temporary use, except scaffolding (7739-0/03); reservation services and other tourism services not previously specified (7990-2/00); organization services for fairs, congresses, exhibitions and parties (8230-0/01); party and event houses (8230-0/02); theatrical production (9001-9/01); musical production (9001-9/02); production of dance shows (9001-9/03); production of circus, puppet and similar shows (9001-9/04); sound and lighting activities (9001-9/06); performing arts, shows and complementary activities not previously specified (9001-9/99); management of venues for performing arts, shows and other artistic activities (9003-5/00); production and promotion of sporting events (9319-1/01); nightclubs, discos, dance halls and the like (9329-8/01); restaurants and the like (5611-2/01); bars and other establishments specializing in serving drinks, without entertainment (5611-2/04); bars and other establishments specializing in serving drinks, with entertainment (5611-2/05); travel agencies (7911-2/00); tour operators (7912-1/00); activities of botanical gardens, zoos, national parks, ecological reserves and environmental protection areas (9103-1/00); amusement parks and theme parks (9321-2/00); activities of associative organizations linked to culture and art (9493-6/00).

Tax Law | CPDMA Team