On November 1, 2022, Normative Instruction RFB No. 2,114/2022 was published to regulate the Emergency Program for the Resumption of the Events Sector (PERSE), which was instituted by Law No. 14,148/2021 and Ordinance ME No. 7,163/2021.
PERSE guarantees a 0% tax rate of IRPJ, CSLL, PIS/PASEP and COFINS on revenues and results of the economic activities related to the events sector until February 2027.
The tax benefit is applicable exclusively to revenues and results obtained from the economic activities listed in Annexes I and II of Ordinance ME No. 7,163/2021 and that at the same time are related to:
I. production or sales of tickets to conferences; fairs; sports,
social, promotional or cultural events; business fairs, shows,
parties, festivals, symposiums or concerts that take place in
general event venues, social and kids party venues, nightclubs, and
II. hotel management in general;
III. movie theater management; and
IV. tourist services.
In order to use the PERSE tax benefit, entities that use the taxable income method must calculate the profit from these event activities while complying with other provisions set forth in the legislation. On the other hand, entities that use estimated profit or arbitrated profit methods must not compute the revenues resulting from these event activities in the calculation basis of the above-mentioned taxes.
The tax benefit is not applicable to PIS/COFINS due upon the import of products or services nor to companies subject to the Simples Nacional tax regime.
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