Post by account_disabled on Mar 13, 2024 20:59:47 GMT -8
Their taxable profit [1] — reducing it by a maximum of double the expenses proven to have been incurred with the program. SpaccaArticle 5 of Law intended to change the deduction limit from 5% of taxable profit to 4% of the tax due. The modification leads to the mathematical impossibility of the calculation. In fact, how can we combine the rule that the deduction (double) must be made on taxable profit with the requirement that it be limited to a percentage of the tax? In other words: the calculation of one of the elements of the calculation base (the ceiling on PAT expenses deductible from taxable profit) depends on prior knowledge of the tax due, which is logically and chronologically subsequent.
We will return to the topic later. Imagine a company with 600 employees, half earning three and half earning ten monthly minimum wages, where everyone receives 0.5 minimum monthly wages for food, and which obtains taxable profit of R$100 million. Your maximum EX Mobile Phone Numbers PAT deduction would be 7,200 minimum wages, or R$8,726,400 (300 minimum wages per month, plus double) [2] . Considering the criteria of the law (and not those of the decree) and calculating the limit of 4% on taxable profit (and not on the calculated tax), the company would have taxable profit of R$ 96 million (R$ 100 million minus double the PAT expenses, with a ceiling of R$4 million), which would impose a debt of additional.
Equally aware of this logical impossibility, the Executive tried to resolve it by providing that the deductible portion, instead of corresponding to twice the food expenses (subject to a ceiling), would correspond to the product of these (without double) by the tax rate. Now comparing tax (the result of this multiplication) with tax (the ceiling of 4% of the calculated tax), and no longer base with tax — as in the impossible coexistence of Laws, Decree RIR/2018, articles 641, caput , and 642) overcomes the mathematical impasse, but at the cost of the primacy of the law, as will be seen later.
We will return to the topic later. Imagine a company with 600 employees, half earning three and half earning ten monthly minimum wages, where everyone receives 0.5 minimum monthly wages for food, and which obtains taxable profit of R$100 million. Your maximum EX Mobile Phone Numbers PAT deduction would be 7,200 minimum wages, or R$8,726,400 (300 minimum wages per month, plus double) [2] . Considering the criteria of the law (and not those of the decree) and calculating the limit of 4% on taxable profit (and not on the calculated tax), the company would have taxable profit of R$ 96 million (R$ 100 million minus double the PAT expenses, with a ceiling of R$4 million), which would impose a debt of additional.
Equally aware of this logical impossibility, the Executive tried to resolve it by providing that the deductible portion, instead of corresponding to twice the food expenses (subject to a ceiling), would correspond to the product of these (without double) by the tax rate. Now comparing tax (the result of this multiplication) with tax (the ceiling of 4% of the calculated tax), and no longer base with tax — as in the impossible coexistence of Laws, Decree RIR/2018, articles 641, caput , and 642) overcomes the mathematical impasse, but at the cost of the primacy of the law, as will be seen later.