| Update: | Compliance Alert – Changes to CPRB rates and transition rules |
| Date: | 2024-12-12 |
In September 2024, Brazil's Official Gazette published Law No. 14.973, extending the payroll tax relief for 17 sectors and municipalities with up to 156 000 inhabitants until the end of 2024.
This law also outlines the transition rules and the end of the Social Security Contribution on Gross Revenue (CPRB).
What are the changes?
The gradual reduction of CPRB rates will begin in 2025. The new rates, as detailed in Technical Note EFD-Reinf 05/2024, will adjust Table 09 – CPRB of the EFD-Reinf (Digital Tax Recording of Withholdings and Social Security Contribution Information) to maintain the tax relief until the end of 2024 and gradually reintroduce payroll taxes with reduced CPRB rates:
- 80% in 2025
- 60% in 2026
- 40% in 2027
What are the impacts?
These changes will affect businesses by gradually increasing their payroll tax obligations. The updated rates for various activities, products, or services are as follows:
| Until 31/12/2024 | 01/01/2025 to 31/12/2025 | 01/01/2026 to 31/12/2026 | 01/01/2027 to 31/12/2027 |
| 1 | 0.8 | 0.6 | 0.4 |
| 1.5 | 1.2 | 0.9 | 0.6 |
| 2 | 1.6 | 1.2 | 0.8 |
| 2.5 | 2 | 1.5 | 1 |
| 3 | 2.4 | 1.8 | 1.2 |
| 4.5 | 3.6 | 2.7 | 1.8 |
Implementation timelines
To allow companies to test and verify the new rates before the first reduction in January 2025, the restricted production environment dates have been moved to November 2024. The provisional changes in the restricted production environment will remain until January 2025, when the standard production table will be reinstated.
The complete table for production environments can be accessed on the Public Digital Bookkeeping System (SPED).