Originally published in the June 5 edition of World Tax Daily (Copyrights Tax Analysts)
Brazil’s House Commission of the Amazon, National Integration and Regional Development on May 27 approved Law Project 4,554/2008, which would reduce by 75 percent the 9 percent social contribution on net income (CSL) for new investment projects in northern and northeastern Brazil.
The law project would extend to the CSL the same reduction (of 75 percent) currently applicable to corporate income tax for new projects in northern and northeastern Brazil under the jurisdiction of the Superintendence for the Development of Northeastern Brazil (SUDENE) or the Superintendence for the Development of the Amazon (SUDAM). The CSL reduction would be effective during the first 10 years after commencement of the investment project.
The law project now will be submitted for consideration by the House commissions for finance and taxation and then to the Commission of Constitution and Justice.
David Roberto R. Soares da Silva