Law Nº 15,079, enacted on December 27, 2024, establishes the Additional Social Contribution on Net Profit (CSLL) as part of Brazil’s effort to align with the Global Anti-Base Erosion Rules (GloBE Rules) under the OECD’s Pillar II Inclusive Framework. This law aims to implement an effective minimum taxation of 15% for multinational groups generating annual revenues of at least 750 million euros, thereby ensuring greater equity and transparency in international taxation.
The regulation introduces several adjustments and procedures to calculate the GloBE profit or loss of constituent entities, as well as the tributos abrangidos ajustados (in English, adjusted covered taxes) used for the calculation. These adjustments include considering temporary differences and excluding certain income and expenses from the GloBE profit calculation. Additionally, specific rules are established for the location of entities and the determination of the effective tax rate in each jurisdiction.
The law also details penalties for non-compliance with registration and information submission obligations, including significant fines for entities that do not meet the established deadlines. Furthermore, it allows for the rectification of information in case of proven errors, with specific deadlines for correcting the data.
A notable aspect of the law is the introduction of the substance-based income exclusion, which allows for the reduction of GloBE profit by excluding certain benefits related to payroll and tangible assets. This measure aims to avoid double taxation and promote investment in productive assets, since the exclusion helps to ensure that jurisdictions with genuine economic activities are not unfairly taxed under the GloBE rules.
Moreover, the law authorizes the Executive Branch to convert certain tax incentives into refundable tax credits starting in 2026, which could benefit companies that invest significantly in Brazil. Specific provisions are also established for the qualification of countries with favorable taxation and the deduction of taxes paid abroad.
In summary, Law Nº 15,079 represents a significant step towards modernizing Brazil’s tax system, aligning it with international standards, and strengthening the fight against base erosion.