The Brazilian government is working on a comprehensive proposal to reform the ISS – the service tax, levied by municipalities. The major changes will include new rules on the taxation of credit card, health insurance, and leasing transactions, as well as an expansion of the list of services covered by the tax. The increase on the tax base is focused on the tech industry. Brasília also expects to put an end to the fiscal war waged by local governments.
The bill is expected to be sent to Congress by the end of next week, with a request for constitutional urgency, so it could be approved later this year and already be in force by 2014.
Today, the service tax on all credit card, leasing and health insurance transactions is levied by the city where the company that generates the operation is headquartered. The proposal is that the collection happens where the service was purchased
Valor Economico
