NEW LAW ON PROFIT SHARING – INCLUDING INCOME TAX EXEMPTION
The Law No. 12.832/2013, which provides for employee participation in profits or results of the Company, was published in the Official Gazette of June 21st, 2013 This Law ensures for workers who receives up to R$ 6.000,00 of profit sharing, exemption from income tax on such amount.
This Law amends provisions of Laws No. 10.101/2000, which provides for employee participation in profits and results, and Law 9.250/1995, which amends the law of income tax.
It is also important to emphasize , that the Law No. 12.832/ 2013 brings a progressive scale of taxation. See below:
|
PROFIT SHARING – ANNUAL BASIS – R$ |
RATE |
INCOME TAX EXEMPTION (R$) |
|
from 0.00 to 6,000.00 |
0% |
– |
|
from 6,000.01 to 9,000.00 |
7,5% |
450.00 |
|
from 9,000.01 to 12,000.00 |
15% |
1,125.00 |
|
from 12,000.01 to 15,000.00 |
22,5% |
2,025.00 |
|
Higher than 15,000.00 |
27,5% |
2,775.00 |
Participation in profits or results will be subject to negotiation by agreement or collective agreement or joint committee chosen by the parties.
NOTE: Currently, the exchange rate from R$ to US$ is in average of R$2.30