BRASILIA (Reuters) – Brazil’s Finance Ministry said on Monday that, if there is a revenue shortfall, it will submit proposals to Congress in the second half of this year to tax big technology companies and introduce a global minimum tax of 15% for multinationals to meet a 2025 fiscal target.
In a 2025 budget presentation sent to Congress on Friday, which projects a primary surplus of R$3.7 billion next year, the Treasury Department estimated potential revenue from raising certain income taxes at R$17.9 billion.
In a separate bill submitted to lawmakers on Friday, the government proposed changes to the social contribution tax on corporate income (CSLL) and the interest on share payments (JCP).
The ministry estimates that R$58.5 billion could be raised through tax negotiations next year, including R$30 billion through a new dispute resolution program for large taxpayers set to start in 2025 after a deal was struck this year with state oil giant Petrobras.
“Companies that approached us estimated that they would have to pay R130 billion in settlements, but we have included R30 billion in the budget for 2025,” the ministry said.
The ministry also predicts another 28.5 billion reais from rulings by Brazil’s Federal Administrative Council for Tax Professions (CARF), which handles taxpayers’ administrative cases.
According to the ministry, correcting tax distortions will generate another R$20 billion in revenue next year.
(Reporting by Marcela Ayres; Editing by Mark Porter)
