End of the CPRB option for several economic sectors
As the option to pay the employers’ social security contribution on gross revenue (“CPRB”) no longer applies with respect to most economic activities, all companies that had made said option in the past shall, as of July 2017, resume the payment of social security contribution on the payroll. Click here for further information.
The CPRB regime was established in 2011, by Law No 12,546, and allows companies operating in different economic sectors to pay the social security contribution on the gross revenue as tax basis, instead of paying it at the rate of 20% over the total amount of compensations paid to employees, freelancers and self-employed workers, as set forth in Law No 8,212/1991, art. 22, items I and III.
However, the Provisional Measure (“MP”) No 774, as of 30 March, 2017, restricted such option to the following activities only:
- road, railway, and subway passengers transportation companies;
- construction companies classified in groups 412, 432, 433 or 439 of the CNAE 2.0;
- infrastructure construction companies, classified in groups 421, 422, 429 or 431 of the CNAE 2.0”; and
- newspaper and radio, sound and images broadcasting companies mentioned in Law No 10,610/02, classified in classes 1811-3, 5811-5, 5812-3, 5813-1, 5822-1, 5823-9, 6010-1, 6021-7 or 6319-4 of the CNAE 2.0.
Pursuant to MP No 774/2017, such new rules shall take effect on 1 July, 2017, i.e., as from the payroll of July 2017.