Factsheet: PIS/cofins

PIS/cofins

Key Information
Full name of Instrument & Measure (English): 
PIS/Cofins - payroll and social security taxes
Description: 
Profit participation contribution (PIS) and social security financing contribution (COFINS) PIS and COFINS are federal taxes imposed monthly on gross revenue earned by legal entities. PIS is a mandatory employer contribution to an employee savings initiative and COFINS is a contribution to finance the social security system. PIS and COFINS are due on importations of goods and services from abroad (i.e. PIS-Import and COFINS-Import). The reduction of the so-called PIS/Cofins, payroll and social security taxes, and interest rates on loans is expected to help ethanol groups offset production costs that have risen steadily in the last decade. Provisional Measure (PM) No. 668/15 is connected to three Decrees (Nos. 8,392/2015, 8,393/2015, 8,395/2015) that increases the PIS and COFINS rates, as well as the tax on financial transactions (IOF), and amends the rules for the tax on manufactured products (IPI).
Goal/Aim: 
Support to sugar-ethanol industry

Sector/Topic targeted:

Responsible Authority: 
Ministry of Mines and Energy (MME)

Status:

Trade Relevance: 
Increase domestic production of ethanol => availability for export
Year Instrument & Measure Started: 
2015