Publications - 22/06/21

Brazilian Supreme Court decision on social contribution on gross revenues (CPRB) calculation

Brazilian Supreme Court ruled Last Friday (6/18) that the services tax (ISS) can be added into the calculation basis of the social contribution on gross revenues (CPRB).

In February, the Court had already ruled that the VAT tax (ICMS) is part of the CPRB calculation basis (RE 1,187,264), considering that, with the CPRB, the company would have a tax benefit aiming the reduction of the taxes levied over payroll, with optional accession.

Under the terms of the winning vote, since the CPRB is a tax benefit, the thesis would not be similar to that judged in extraordinary appeal n. 574,706 which concluded for the exclusion of VAT tax (ICMS) from the PIS and Cofins calculation basis; and that authorizing the exclusion of the services tax (ISS) from the CPRB calculation basis would represent the expansion of a tax benefit.