Some companies have succeeded in getting permission from the courts to collect a fixed amount of ISS, through a professional society, which are formed by a group of professionals who share a common function.
According to Decree Law No. 406, of 1908, professional companies have the benefit of paying the ISS with special amounts, which are usually lower when compared to a common company, where the payment is made in an amount referring to the income of earnings.
In order to stop the smaller payments of ISS, some city halls are barring companies from forming professional societies when it is formed by members who have different roles.
Recently, the Federal Supreme Court (STF) made the decision to include in their judgement the topic of the exclusion of the ISS from the calculation of the PIS and Cofins, which can cost close to R$ 32.3 billion to the Union’s coffers. It is expected that the decision on the subject will take place in the month of August, between the 20th and 27th.
The Tax On Services (ISS) is levied on the delivery of services carried out by companies and autonomous professionals. Also known as the Tax On Services Of Any Nature (ISSQN), it is collected by municipalities and the Federal District. Almost all operations that involve services generate the collection of this tax, which makes it extremely important.
Superior Court determined the collection of ISS on the management of foreign funds
In a recent decision, the Superior Court of Justice ruled in an unprecedented way regarding the collection of ISS on the management of foreign investment funds . The controversy concerns Complementary Law No. 116/03, which provides in its art. 2, item I, that the Tax on Services is not levied on exports of services abroad. However, the sole paragraph excludes services developed in Brazil from the exemption, whose result can be verified here, even if the payment is made by a resident abroad.
Written by Marcos Ferreira, content assistant at Drummond Advisors