CPMF tax ends this year 25
Transcrição
CPMF tax ends this year 25
I N T E R N AT I O N A L CO R P O R AT E TA X 25 International Tax Brazil December, 2007 tax CPMF tax ends this year On Wednesday, December 12th, 2007 the government's proposal for extending the effectiveness of the CPMF tax (“Contribuição Provisória Sobre Movimentação Financeira) was rejected by the Brazilian Congress. The Federal government claimed the tax was necessary to secure approximately R$40 billion (app. US$23 billion) in tax revenues needed to fund the public health system. As a consequence, starting January 1st, 2008 the controversial CPMF tax is no longer levied on banking transactions. The CPMF tax was created in 1996 and named IPMF, a temporary levy aimed at funding the public health system. Its validity was extended a number of times, eventually renamed to CPMF and according to current law it will stay in effect until December 31, 2007. It is levied on debts posted to checking accounts (and some other qualifed financial transactions) at the rate of 0.38%. For more information, contact an international corporate tax professional: São Paulo Marienne S. Munhoz, +55 11 2183-3182, [email protected] Ericson Amaral, +55 11 2183-3375, [email protected] © 2007 KPMG Tax Advisors - Assessores Tributários Ltda., a Brazilian member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. The information contained in International Tax Brazil is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG logo and name are trademarks of KPMG International, a Swiss cooperative. Ruy Lopes, +55 11 2183-3269, [email protected] Fabiana Almeida, +55 11 2183-6571, [email protected] Luiz Dardes, +55 11 2183-3188, [email protected] Rio de Janeiro Roberto Haddad, +55 21 3515-9469, [email protected] Pedro Anders, +55 11 2183-3123, [email protected] Mauro Ostwald, +55 21 3515-9417, [email protected] Murilo Mello, +55 11 2183-3261, [email protected] Luis Trzcina, +55 21 3515-9462 [email protected] If you have any questions or comments or wish to update your data, include other professionals or remove your name from the distribution list, please send an e-mail to [email protected].