Brazil: Pillar 2 – Provisional Measure and Normative Instruction establish an additional CSLL in alignment with the GloBE Rules
In brief
On October 3, 2024, Provisional Measure No. 1,262/24 (MP) and Normative Instruction RFB No. 2,228/24 (IN) were published to align Brazilian tax legislation with the OECD’s GloBE Rules and establish an effective minimum taxation of 15% through an additional Social Contribution on Net Profit (CSLL).
More details
The MP and the IN establish that the new Brazilian global minimum tax of 15% impacts multinational groups that fall within the scope of the OECD’s GloBE Rules, that is, those that have annual revenues of at least €750 million (seven hundred and fifty million euros) in the consolidated financial statements of the Ultimate Parent Entity in at least two of the four fiscal years immediately preceding the analyzed year.
The rules were designed to ensure that the additional CSLL is considered a Qualified Domestic Minimum Top-up Tax (QDMTT) under the OECD Inclusive Framework.
Regarding the additional CSLL, the MP and the IN will come into effect from January 1, 2025. For the new rules to be fully effective, however, the MP needs to be converted into law within 120 days.
During a press conference held today, representatives from the Ministry of Finance announced that the Brazilian Federal Revenue Service will initiate a Public Consultation on IN 2,228/24 in the coming days.
