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]
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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]
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