The measure approved by the House guarantees around R$21 billion (approximately US$ 48 billion) to the working capital of companies.

On Tuesday (17), the House concluded the voting of the Provisional Measure (PM) 447/08, which broadens in up to ten days the terms for the collection of various federal taxes, with the objective of letting the cash reserved for those taxes for longer with the companies. The matter will still be voted by the Senate.

During the main voting of the day, the congresspeople included in the text the amendment suggested by the Deputy Alfredo Kaefer (PSDB-PR), which exempts from social contributions to the Support Fund for the Rural Worker (Funrural) the income obtained with seeds, crops, semen, embryos, and animals used as test articles in researches. There were 250 votes for the matter and 126 against it.

The exemption was revoked by the Law 11.718/08 in June 2008, and those products started paying 2% as a social contribution for the National Institute of Social Security (INSS), and 0.1% to finance the accident-allowance.

According to the author of the amendment, several countries do not tax the sector of matrix development of agribusiness. “The sector did not pay Funrural for 19 years. The collection of that tax means less than 5% of the total amount collected by INSS, but is a hassle for the producer”, affirmed Kaefer.

Tobacco Industry
The House also approved the suggestion of the Deputy Vilson Covatti (PP-RS), which determines the collection of Exercise Tax (IPI) of the tobacco industry on the third weekday of the following month to its determination. That tax has currently to be paid every ten days inside the same month. “It is about tax justice”, said Covatti.

For the government’s leader, Deputy Henrique Fontana (PT-RS), those two approved points by the Chamber should be better discussed by the sector involved with Executive Power. “It is not fair that corn producers, for instance, pay Funrural and seed producers not”, he argued.

Terms
Initial estimates in the Ministry of Finance point out that the new payment terms should allow the companies to work around R$21 billion (approximately US$ 48 billion) cash on hand before collecting the taxes.

The deadline for the collection of federal taxes range from the 10th to the 20th day of the following month to the generation factor. The MP 447/08 nearly unifies all dates in two: 20th and 25th day.

The broader prorogation period was defined for the social-security contribution due by the individual taxpayer, which should be discounted and collected by the company in which he/she works. The term goes from the second to the 20th day of the following month to the competency.

The labor cooperatives will start collecting the contribution from the associates on the 20th day. Before the PM, that deadline was on the 15th day.

Instead of being paid on the 10th day, the contribution for the Social Security should be paid on the 20th day, in the following cases: contribution incurring on the service providing by labor cooperatives; contribution of the rural individual employer; and contribution incurring on the contract on temporary transfer of labor or temporary labor.

Income Tax
Withholding tax (IRRF), also paid before the 10th of the following month to the competency, can be settled on the 20th day.

The Exercise Tax (IPI) will now be due on the 25th Day, which means 10 days more than the current deadline. That benefit is not valid for IPI on cigarettes, whose collection term keeps being by the third workday of the month, after ten days of the event of the taxable operation.

The contributions for the Social Integration Program (PIS/Pasep) and for the Financing of Social Security (Cofins) will be paid until the 25th. The current deadline is the 20th day, and will be kept valid for banks and other financial institutions.

Report - Eduardo Piovesan
Editing - Newton Araújo
Translation – Positive Idiomas Ltda