Law n. 12,546 was recently issued with the purpose of reducing the tax burden on the payroll of certain economy sectors. As provided by this Law, instead of the tax being of 20% over the payroll, the companies will collect social security tax corresponding to a determined percentage over the gross revenue.

However, after this law was issued, the listed sectors were subject to a new calculation of the tax that included ISS and ICMS in its basis. Facing this scenario, many companies filed judicial lawsuits to challenge this modification.

A recent decision rendered by the Federal Court of Osasco decided that ISS and ICMS should be excluded from the taxable basis of the social security tax over the gross revenue of an IT company.

The rendered decision mentioned that there is a case under trial in the Federal Supreme Court that concerns the constitutionality of the inclusion of ICMS in PIS and COFINS taxable bases, and the same grounds apply.

(Valor Econômico, 05.03.2013, p. E1). (Available at: <>. Accessed in: Apr ,2013).