2023-04-17 22:30:19
Among the tax obligations that a company must comply with is the Social Contribution on Net Income (CSLL).
By paying the contribution, companies fulfill their responsibility to contribute to the financing of social security, which can strengthen their image in society.
In addition, compliance with tax obligations is important to avoid sanctions and penalties, such as fines and interest.
What is CSLL?
CSLL is a federal tax levied on the profit of Legal Entities (PJs).
Established by the Federal Constitution and regulated by Law No. 7689/1988, the CSLL is a contribution due by companies that calculate Actual, Presumed or Arbitrated Profit, with rates that vary according to the activity performed and the taxation system adopted.
The purpose of this contribution is to finance social security, which includes social security, social assistance and public health.
How does CSLL work?
The CSLL is calculated on the net income earned by the company, which is obtained by the difference between gross revenue and the deductions allowed by law, such as costs, expenses and depreciation.
For companies that opt for the Real Profit regime, the basic rate is 9%, but it can reach up to 20% in certain economic activities. For companies that opt for the Presumed Profit regime, the rate is 12% on the presumed calculation basis. That is, it varies according to the tax regime and activity.
The CSLL must be declared and paid monthly by the company, through the Federal Revenue Collection Document (DARF), which is issued through the Tax and Contribution Payment System for Micro and Small Businesses (Simples Nacional) or through the Federal Revenue Collection System (Siafi), in the case of companies that fall under other tax regimes.
Difference between CSLL and IRPJ
The main difference between CSLL and IRPJ is the purpose. While the CSLL is a tax destined exclusively to finance social security, which encompasses social security, social assistance and public health, the IRPJ is a tax destined to the general financing of the State and can be used for various purposes, such as investments in infrastructure, health, education, security, among others.
Another important difference is related to rates and calculation. CSLL is calculated on the company’s net income and has rates that vary according to the company’s activity and the adopted tax system. The IRPJ, on the other hand, is calculated on the presumed or actual profit of the company and also has rates that vary according to the tax regime adopted.
Taxable event CSLL
The taxable event for CSLL is the calculation of Net Income, based on accounting income, with additions and exclusions established by tax legislation.
As a general rule, the CSLL calculation regime must follow the option made for IRPJ purposes, which can be:
- Quarterly Actual Income, where each quarter is a specific base period;
- Annual taxable profit, with monthly advances of CSLL due;
- Presumed profit;
- Simplified national regime (Simples Nacional).
In the last two regimes, the CSLL calculation takes into account the billing and other income of the legal entity.
In Presumed Profit, the calculation is based on a presumed percentage of profit. Under this regime, the CSLL calculation base corresponds to 12% of gross revenue from commercial, industrial, hospital services and cargo transportation activities; 32% in the provision of services in general, including business intermediation, administration, leasing or assignment of real estate, movables and rights of any nature; 1.6% in the retail sale of fuel and natural gas; and 16% in the case of transport services, except for cargo;
In Simples Nacional, the calculation is based on the application of a percentage included in the total rate of the regime corresponding to the activity and level of revenue of the legal entity.
CSLL rates
The applicable CSLL rates are:
- 9% as a general rule;
- 15% for private insurance and capitalization companies, securities dealers, foreign exchange and securities brokerages, credit, financing and investment companies, real estate credit companies, credit card companies, leasing companies , savings and loan associations, and credit unions;
- 20% for banks of any kind and development agencies.
In addition, non-profit entities, such as institutions of a philanthropic, recreational, cultural, educational, scientific nature, etc. are exempt or immune from CSLL, as the case may be, provided that they meet the respective requirements for the enjoyment of the exemption or immunity.
how to calculate
To exemplify the calculation of CSLL, let’s assume that a company recorded a net profit of R$ 100,000.00 in the quarter and that it is subject to the 9% rate of CSLL in the Real Profit regime. In this case, the calculation would be:
Net profit: R$ 100,000.00;
CSLL rate: 9%;
CSLL due: BRL 100,000.00 x 9% = BRL 9,000.00.
Thus, the company would have to pay R$ 9,000.00 of CSLL for the quarter.
It is worth remembering that the CSLL calculation can be more complex for companies that have different economic activities, since the rates can vary according to the activity.
In addition, companies that opt for the Presumed Profit regime have a presumed calculation basis, which may be different from the net income actually calculated, which may change the amount of CSLL due. Therefore, it is important to have the help of an accountant or tax consultant to perform the calculation correctly.
Term
In the case of Real Profit, CSLL is due quarterly and is due on the last business day of the month following the calculation quarter. For example, for the quarter from January to March, the CSLL maturity is on the last business day of April.
For companies opting for Simples Nacional, the CSLL is calculated and paid together with the other taxes in the Simples Nacional Collection Document (DAS), which expire on the 20th of each month.
It is important for companies to pay attention to the due dates and pay the CSLL within the stipulated period, to avoid the incidence of fines and interest for late payment.
penalties
Anyone who does not pay CSLL is subject to sanctions and penalties provided for in Brazilian tax legislation.
Non-payment of CSLL may lead to the application of fines, which vary according to the amount due and the period of delay. They can reach up to 20% of the amount due, plus interest and monetary restatement.
If the company does not regularize its situation with the Federal Revenue, the agency may file a tax enforcement action to collect the amount due, plus interest, monetary correction and fine.
In addition, the company that does not pay the CSLL may also be included in the Informative Register of Unpaid Credits of the Federal Public Sector (Cadin), which may impair its ability to obtain financing, participate in bids and enter into contracts with the public administration.
And in case of insufficient assets of the company to settle the debt, the Federal Revenue can seek the equity of the partners to pay off the debt. This measure is known as redirection of tax execution.
To avoid these problems, it is important for companies to comply with their tax obligations and always seek to keep up to date with their taxes and contributions.
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