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 concerts venues;
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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Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.