Brazil changes rules for cash refund of welfare taxes


Brazil changes rules for cash refund of welfare taxes


Provisional Measure 413 establishes new rules regarding cash refunds of P.I.S. and COFINS withheld from service providers. The tax withholdings were created by Law 10,833/03, effective from February 1, 2004, and apply to some payments, including those for professional services. The provisional measure establishes the conditions under which excess withholdings may be refunded in cash.