Alana Aiche do Carmo Dahrouj
Lawyer at Marcos Martins Advogados
Last Wednesday (24), Complementary Law No. 175 was sanctioned, bringing changes to the collection of the Tax on Services – ISS, which is the responsibility of the Municipalities.
With the aim of pulverizing the collection of the large municipalities that are home to the majority of companies, the collection of the tax was transferred to the municipality where the service is actually provided.
The services covered by this change are health insurance, medical-veterinary, brokerage,leasing,franchising,factoring, fund management, consortia and credit or debit cards.
The change is to be applied in stages from 2021 to 2023, with a progressive reduction in the amounts going to the municipalities where the companies providing the services are established and a progressive increase in the amounts going to the municipalities where the service users are located, which will be carried out as follows:
I – for services calculated up to the end of 2020: 66.5% of the proceeds will go to the municipality where the service provider is based, and 33.5% to the municipality where the service taker is based;
II – for services calculated in 2021: 33.5% of the proceeds will belong to the municipality where the service provider is located, and 66.5% to the municipality where the service taker is located;
III – for services calculated in 2022: 15% of the proceeds will belong to the municipality where the service provider is located, and 85% to the municipality where the service taker is located;
IV – and for services calculated in 2023: 100% of the proceeds will belong to the municipality where the service taker is domiciled.
The law innovates by standardizing accessory obligations, determining that the services mentioned be calculated and declared by taxpayers using a unified electronic system to be used nationwide.
The taxpayer must make the declaration through the standardized system by the 25th day of the month following the occurrence of the respective taxable events, and it is certain that the ISS, for the services covered by this change, must be paid by the 15th day of the month following the occurrence of the taxable events.
Marcos Martins Advogados puts its tax team at your disposal for further clarification on the subject.
