Bolsonaro sanctions the extension of the salary exemption

The measure sanctioned by President Jair Bolsonaro maintains the exemption for 17 sectors of the economy, including the automotive industry. Photo: Government of the State of Rio de Janeiro

President Jair Bolsonaro sanctioned on Friday (31) the law which extends until December 31, 2023 the exemption of the wage bill of the 17 sectors which employ the economy the most. Originally, the exemption would expire on Jan. 1, but the manufacturing sector asked for the two-year extension and lobbied Congress, in addition to gaining presidential support for approval of the measure. The text was published in the latest edition of the Diário Oficial da União (DOU) of 2021.

Thus, companies in listed sectors will be able to continue to replace the social contribution of 20% on the wages of employees by a rate on gross income, which can vary from 1% to 4.5%. This generates an annual income exemption of around R $ 9 billion per year.

Sectors benefiting from the measure include civil construction and infrastructure companies, leather, clothing and apparel, vehicle and bodywork manufacturing, machinery and equipment, animal protein, textiles, information and communication technologies, integrated circuit design, metro-rail passenger transport, road transport, collective road transport, road freight transport, among others.

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