Brazil has published Provisional Measure No. 1.034 of 1 March 2021, which sets the social contribution on profits (CSLL) rates as follows, including an increase for certain financial institutions:

• 20% until 31 December 2021 and 15% from 1 January 2022 in the case of:
  • private insurance companies;
  • capitalization companies;
  • distributors of securities;
  • foreign exchange and securities brokers;
  • credit, financing, and investment companies;
  • real estate credit companies;
  • credit card administrators;
  • leasing companies; and
  • savings and loan associations;
• 20% until 31 December 2021 and 15% from 1 January 2022 in the case of credit unions;
• 25% until 31 December 2021 and 20% from 1 January 2022 in the case of banks of any kind; and
• 9% for other legal entities.

Note, the CSLL rate was previously increased to 20% for banks of any kind from 1 March 2020.

The CSLL rate changes provided by Provisional Measure No. 1.034 enter into force on 1 July 2021. However, as a Provisional Measure, it must be extended or converted into law within 60 days to remain in force.