Brazil’s Supreme Federal Court (Supremo Tribunal Federal/STF) is going to resume – between May 26 and June 02 – judgment on the constitutionality of art. 1 of Complementary Law 157/2016. The latter amended Complementary Law 116/2003, determining that ISS tax is due in the municipality of the service taker, and no longer in the place where the service provider is established.
The judgment is of particular interest to the services described in subitem 15.01 of the List of Services, which include Payments companies and Fund Administrators, namely:
“15.01 - Administration of any funds referring to consortiums, credit or debit cards and similar, client portfolios, post-dated checks and similar.”
At the beginning of the judgment, in April this year, the majority of the Court was favorable to taxpayers by declaring the unconstitutionality of the ISS requirement at service takers’ locations.
This understanding can still be changed, however, during the judgment that will be resumed in the next few days.
For more information, please contact our Tax Advisory team at Barcellos Tucunduva Advogados: ([email protected]).