A provisional measure that reduces the social security charges applied to shipping companies is under discussion before the Brazilian Congress.
The president published Provisory Measure 63 in April 2012. Among other things, the measure establishes that from December 31 2014, several companies that fall under the remit of Article 55 of the measure must start paying a social security contribution corresponding to 1% of the company's gross annual revenue. This replaces the contribution of 20% of the total remunerations paid or credited to individual taxpayers rendering services thereto.
Congress, through the mixed committee that analyses the measure, has recently added to the list of companies that will benefit from the new social security regime. The list now includes:
- cargo air carriers;
- passenger air carriers;
- passenger sea carriers in relation to coastal navigation;
- cargo sea carriers in relation to ocean navigation;
- passenger sea carriers;
- cargo carriers in relation to inland navigation;
- maritime supply carriers; and
- port supply carriers.
If approved, the inclusion will have a significant impact on Brazilian shipping companies.
For further information on this topic please contact Godofredo Mendes Vianna at Law Offices Carl Kincaid by telephone (+55 21 2276 6200), fax (+55 21 2253 4259) or email ([email protected]).