In 2016, the federal tax legislation was amended to determine that, in relation to certain services (health plans, leasing, credit or debit card management, among others), the competent Municipality to collect the ISS shall be the one where the service takers or intermediaries are located. Supplementary Law No. 175 of 2020 created the ISS Accessory Obligations Management Committee ("CGOA") to regulate the so-called "ISS Standard System". Through this electronic system, which shall be developed by taxpayers considering the layout to be provided by the CGOA, the Tax shall be calculated and declared to the competent authorities.
According to the new rules, the payment of the ISS is to be made until the 15th day of the month following the month in which the service was rendered. With regard to services rendered in the months of January, February and March 2021, taxpayers may pay and declare the Tax until the 15th day of the month of April 2021, plus SELIC interest.
In 2018, considering that taxpayers would have great difficulties to comply with the new rules, Justice Alexandre de Moraes, of the Federal Supreme Court, decided to suspend the measure - among other arguments, he considered that the notion of "service acquirer" was not clear - the decision still needs to be heard by the other Justices. The Minister also suspended rules that have been issued by Municipalities to implement the new collection methodology.
Thus, until the CGOA regulates the provisions of Supplementary Law 175, the municipalities in which the takers of such services are located cannot collect ISS.
In view of the need for regulation, on April 8, 2021, last Thursday, the CGOA held its first meeting to discuss the internal regulations, the objectives to be achieved with the measure, the feasibility of the system, its implementation and maintenance, as well as the possibility of the Committee presenting suggestions to Minister Alexandre de Moraes to have the injunction revoked - the Minister is the reporting justice in the Supreme Court case.
It is possible that until April 15, 2021 (due date for payment of ISS for the months of January, February and March) the CGOA will not have regulated the matter. Even so, it is recommended that companies subject to the new methodology are aware of upcoming events.
BTLAW's tax planning and consulting team is following the evolution of the issue, including the progress of the case in the Federal Supreme Court, and will be able to assist you in complying with the new obligations.
