The Chamber of Deputies is considering a tax reform proposal that could raise taxes on Netflix and Uber. The parliamentarians’ objective is to increase rates aimed at foreign companies that provide services over the internet, called OTTs (over the top).
“These are companies that earn good service revenue and do not leave anything here for Brazil, they just take this money from the effort of each one of us and take it away to other countries”, said, in July, the president of the Special Commission of Tax Reform, deputy Hildo Rocha (MDB-MA).
The change is foreseen in the Proposed Amendment to the Constitution (PEC) 45/2019. It ends with three federal taxes: IPI (Tax on Industrialized Products), PIS (Social Integration Program) and Cofins (Contribution for Social Security Financing).
The text also proposes the end of the state ICMS (Tax on Circulation of Goods and Services), and the municipal ISS (Service Tax). In return, the IBS (Tax on Operations with Goods and Services) would be created, which would define higher rates on foreign OTTs.
The discussion on tax reform must undergo changes in the Chamber, since the government can also present its proposal. It would change only federal taxes and leave changes in state and municipal taxes to a second stage.
With information: TeleSynthesis.