Yesterday, 04/28/2020, the Normative Instruction ("IN") of the Federal Revenue of Brazil ("RFB") No. 1,942/2020 was published, which indicated the CSLL rates applicable for Banks and Development Agencies in the calendar years 2019 and 2020, as well as clarified details of the ascertainment of CSLL for the calendar year 2020.
According to the IN, the CSLL rates applicable to Banks and Development Agencies are: (i) fifteen percent (15%) in the period between January 1, 2019 and February 29, 2020; and (ii) twenty percent (20%) as of March 1, 2020.
Companies taxed by the Quarterly Actual Profit, for purposes of ascertainment of the CSLL due in the first quarter of 2020, will need to make proportional calculations for the gross revenue of the months of January, February, and March of 2020. In this regard, Art. 30-A presents two different formats for calculation, and the choice is optional.
Similarly, companies taxed by the Annual Actual Profit by Estimate that prepare balance sheets as of March 1, 2020 will also need to make proportional calculations for the gross revenue of the period in order to assess the CSLL to be disclosed based on the adjusted result of the period. The two different calculation formats are presented in Article 30-B of IN.
It is worth noting that the effective ascertainment of the CSLL due for the calendar year 2020 of companies taxed by the Annual Actual Profit by Estimate takes place only at the ascertainment of December 31 of each year, when these companies are to ascertain the taxable income and the adjusted result of the period. At this point, article 30-C also makes reference to the calculation alternatives provided for in article 30-B mentioned above.
In practice, companies needed to perform two (2) calculations for CSLL to identify the best alternative for collection in the 2020 calendar year.
For further information, please contact the Advisory Tax team([email protected]) of our firm.
