Brazilian Supreme Court gives new provisions for the admissibility of res judicata
The Brazilian Supreme Court (STF) has decided that a res judicata that disposes differently from what has already been decided by the STF on the same subject is not admissible, that is, matters that have already been judged in lower courts lose their effect if they support a decision different from the one already handed down by the STF.
Originally, this decision was directed at an issue involving the constitutionality of Contribution on Net Income (CSLL) collection, which the STF decided to be constitutional, however, many taxpayers used other res judicatas that provided the opposite to justify the non-payment of this tax. In this sense, the STF not only decided as inadmissible the conflicting decisions not only for the CSLL but extended this understanding to all res judicatas.
For those who might be harmed by such decision, as it may create a tax obligation, the STF ruled that the anteriority principle should be observed, that is, taxes will only be levied after a period of 90-days or within the next fiscal year.
Individual income tax returns for the 2022 tax year have an extended deadline
The Federal Revenue (RFB) reported that the deadline for submitting the income tax return for individuals this year will be from March 15, 2023, to May 31, 2023, instead of ending on April 30 as usual.
The purpose of this amendment is to allow all taxpayers to benefit from the pre-filled declaration form from the beginning of the filing period.
President Lula confirms increase in the Income Tax exemption range and readjustment of the minimum wage
President Luiz Inácio Lula da Silva confirmed that the new minimum wage will be announced in May and will be readjusted to BRL 1,320. Lula also confirmed the increase in the Income Tax (IR) exemption range to BRL 2,640. Today, the minimum wage is BRL 1,302 and the income tax exemption range is BRL 1,900.
Exempting workers earning up to BRL 5,000 a month from income tax was also a campaign proposal by the president. It does, however, come at a high cost. Therefore, government technicians defended that this new step should occur together with a tax reform.
The individual income tax (IRPF) table has not been readjusted since 2015. Last year, with an inflation of 5.79%, it reached the biggest gap in history: 148.10%, according to calculations by the Union of Tax Auditors of Federal Revenue Service (National Union).
President Lula Cuts Social Security Contribution Rate on Fuels to 0%
The president, Luiz Inácio Lula da Silva, through Provisional Measure (MP) 1,157/2023, which came into force as of its publication, reduced the rate of the Contribution to the Social Integration Program (PIS/PASEP) to 0%. and the Contribution for the Financing of Social Security (COFINS). Such reduction is applicable to:
Additionally, until February 28, 2023, the payment of PIS/PASEP and COFINS levied on purchases in the domestic market and on oil imports made by refineries for the production of fuels is suspended.
Finally, the Contribution for Intervention in the Economic Domain (CIDE) levied on operations involving gasoline and its derivatives (except aviation gasoline) is reduced to 0% until February 28, 2023.
Copom maintains Selic rate at 13.75% per annum in first meeting of the year
The Monetary Policy Committee (Copom), of the Central Bank (BC), announced the maintenance of the value of the Selic rate, the basic interest rate of the Brazilian economy, at 13.75% per annum.
In its first meeting of the year and the first of the Lula administration, the Copom decided to maintain the Selic rate in force since August of last year, a result already expected by the financial market.
It is worth remembering that the main monetary policy instrument of the Central Bank is the Selic rate, decided by the Copom
For this year, the inflation target was set at 3.25%, and will be considered formally met if it fluctuates between 1.75% and 4.75%.
Tax reform: new proposal simplifies the collection of taxes on consumption
Senator Oriovisto Guimarães presented a proposal to amend the Constitution (PEC) for tax reform with the aim of simplifying the collection of taxes on consumption.
With PEC 46/2022, which was signed by another 36 senators, the senator intends to unify the state, Federal District and municipal laws that regulate the Tax on Operations Relative to the Circulation of Goods and Services (ICMS) and the Excise Tax (ISS), thus benefiting citizens and the productive sector.
According to the text, the 27 state and Federal District laws dealing with ICMS and the thousands of municipal laws on ISS would be replaced by two, one for each tax, with nationwide coverage.
However, there will be no unification of rates, since they will continue to be determined and adjusted by the laws of the states, the Federal District and municipalities, according to the collection needs of each subnational entity.
The proposal also establishes the collection of ICMS and ISS at the destination of consumption, considering that the demand for public services takes place where the consumer is located, and the amount of taxes will always be explicit in each product.
Companies must submit income statements by February 28th
Employers have until February 28th, the last working day of the month, to deliver income statements to their employees. The same date also applies to financial institutions and stockbrokers, who must deliver the document containing the income from their clients' financial investments for the calendar year 2022.
The reports are essential for filling out this year's Individual Income Tax Return (IRPF), since it is from the data available in the income statements that the taxpayer will be able to enter the information of the earnings that are taxable and the taxes paid to the throughout 2022. In this way, the Federal Revenue will be able to cross-reference information and assess whether the amount paid in taxes and duties was adequate and whether there is any outstanding amount to be paid.
