Brazilian government cuts exemptions on social security with a tax increase

The Federal Government issued a Provisional Measure (MP) that reduces payroll exemptions. According to MP 669, companies from the 56 sectors benefitting from Plano Brasil Maior will pay Social Security from 1% to 2.5% and from 2.5% to 4.5%, respectively, on gross turnover.

According to the president of the Association of Foreign Trade of Brazil, José Augusto de Castro, “this measure will stimulate exports, as it applies to internal billing, and not to the turnover of products exported”
With these measures, the government intends to reduce spending to exemptions, which reached 21,600 million reais last year.
You will find more information on this measure here.