On 23, May 2024, Law 14,859/2024 was enacted, introducing modifications to the Emergency Program for the Event Sector Recovery (“PERSE”), initially established by Law 14,148/2021. PERSE is a governmental initiative designed to provide financial support and tax relief measures for businesses and professionals in the event sector, significantly impacted by the COVID-19 pandemic.

Law No. 14,859/2024 has reduced to zero the tax rates for Corporate Income Tax (“IRPJ”), Social Contribution on Net Income (“CSLL”), Social Integration Program (“PIS”), and Social Security Financing Contribution (“COFINS”) for the following activities:

1. hotels and apart-hotels;
2. catering services;
3. cinematic exhibition activities;
4. fairs, exhibitions, and similar activities (including related activities such as booth creation);
5. event venues, nightclubs, dance halls, and sports event promotion;
6. photography and filming of events;
7. agency services for athletes, cultural and artistic professionals (and associated cultural and artistic organizations);
8. rental of recreational and sports equipment, stages, coverings, and temporary structures;
9. theatrical, musical, dance, circus, and puppet productions;
10. performing arts;
11. sound and lighting services;
12. bars and restaurants (with or without entertainment);
13. travel agencies and tour operators;
14. botanical gardens, zoos, national parks, ecological reserves, environmental protection áreas;
15. amusement parks and theme parks.

*The benefit period is now set at 60 months, starting from March 2022.

To benefit from this program, taxpayers must be registered under under the primary activity in the National Classification of Economic Activities (“CNAE”) or primarily engage in one of the listed activities.

Activities listed from (xi) to (xv), and associative organizations linked to culture and art, will only take advantage of the benefits if registered with “CADASTUR” (Tourism Registry) as of 30, May 2023.

Taxpayers who calculate Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) under the actual or arbitrated profit systems will lose the zero rate for the Social Integration Program (PIS) and Social Security Financing Contribution (COFINS) starting in 2025. However, they will keep the zero rate for IRPJ and CSLL in 2025 and 2026. Additionally, these taxpayers must meet prior qualification requirements within 60 days to maintain the benefit, allowing retroactive application. The qualification must state (i) if the taxpayer will use tax losses, a negative CSLL base, and PIS and COFINS credits from inputs, and (ii) if the taxpayer will use the reduced tax rates.

Taxpayers who paid PIS, COFINS, and CSLL under Provisional Measure 1.202/2023 (which revoked PERSE) can request to offset the amounts paid with tax debts, whether due or not, administered by the Brazilian Federal Revenue Service.

Finally, taxpayers who allegedly and improperly benefited from PERSE can join the voluntary tax compliance program of the Federal Revenue Service of Brazil within 90 days, as established by Law 14,740/2023.