The Brazilian Federal Revenue Service (RFB) published RFB Executive Declaratory Act No. 02/2025, making public the reaching of the legal limit of R$15 billion provided for in Article 4-A of Law No. 14,148/2021 and, consequently, determining the extinction of PERSE for taxable events from April 2025 onwards.
What is PERSE?
PERSE (Emergency Program for the Resumption of the Events Sector) is a program of tax benefits, financial aid and support for companies in the events sector (hotels, tourist services, companies specializing in fairs, sports and social events, among other activities), aimed at compensating and stimulating the sector, which has been severely impacted by the effects of the covid-19 pandemic.
Law No. 14.148/2021 (as amended by Law No. 14.592/2023) created a number of benefits, including a reduction to zero of the PIS, COFINS, IRPJ and CSLL rates for companies in the events sector. The benefit was initially due to run until February 2027.
Changes to the program
After several controversies over whether the program should be maintained and/or gradually closed until 2027, article 4-A was introduced into Law 14.148/2021, setting the fiscal cost of tax expenditure on PERSE, from April 2024 to December 2026, at a maximum of R$15,000,000,000.00 (fifteen billion reais), the use of which would be demonstrated by the RFB in bimonthly monitoring reports. Once the ceiling was reached, the benefit would be extinguished.
However, the sector was taken by surprise by the information provided by the RFB about the early reaching of the ceiling and the extinction of the tax benefit, which entails significant changes to ongoing projects and investments, as well as the risk of layoffs or a reduction in hiring.
Several organizations have already spoken out questioning the figures provided by the RFB, and the movement should put pressure on Congress to seek greater transparency regarding the figures and internal procedures adopted.
Naturally, considering all the history involving PERSE, it is possible that there will be news by March 31, 2025. However, taxpayers who are beneficiaries of PERSE should be aware that the benefit will be extinguished as of April 2025, and it is important to assess, in each case, the convenience of seeking legal action to maintain the exemption.
Our tax team is available to answer any questions you may have.
