Brazil Reestablishes Payroll-based Social Security Tax for Most Companies

Brazil published Provisional Measure 774/2017 (PM 774) in the Official Gazette on 30 March 2017. PM 774 amends Law 12,546/2011, which introduced the social security tax on gross income (CPRB) that replaced the standard 20% social security tax on payroll (INSS) for eligible companies. The amendments introduced by PM 774 limits the companies eligible to apply CPRB to those engaged in passenger transport, construction, broadcasting, and certain others. The applicable INSS rates are 1.5% to 4.5%…