The Brazilian government is considering taxing large tech companies. It may also implement a 15% global minimum tax on multinational corporations to achieve its 2025 fiscal target.
What Happened: The Finance Ministry of Brazil is preparing to present proposals to Congress this year for taxing big tech firms.
Dario Durigan, the ministry’s executive secretary, stated that the plan aligns with global tax cooperation discussions that Brazil has been spearheading as the chair of the G20 forum, reported Reuters.
The Finance Ministry, in a presentation on the 2025 budget bill sent to Congress on Friday, projected a primary surplus of 3.7 billion reais ($178 million) next year. It also estimated potential revenue of 17.9 billion reais from the increase in certain income taxes.
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“They take time to be implemented given the difficulties in obtaining approvals from various countries, but the idea is to bring the lessons learned,” he said.
In a separate bill, the government also proposed changes to the social contribution tax on corporate income (CSLL) and interest on equity payments (JCP) in a separate bill submitted on the same day.
Durigan stated that these revenues are part of a package worth 46.7 billion reais, which also includes the termination or due compensation of tax waivers on payrolls for companies in certain sectors and smaller municipalities.
The ministry anticipates raising 58.5 billion reais from tax negotiations next year, including 30 billion reais from a new dispute resolution program for large taxpayers to be launched in 2025.
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Why It Matters: This move comes amidst a series of events involving tech companies in Brazil. The Supreme Court of Brazil confirmed a ban on Elon Musk’s social media platform X, formerly Twitter, accusing it of spreading hate speech and misinformation.
Previously, it was reported that Musk’s SpaceX was considering accepting payments in Dogecoin for Starlink services in Brazil after the country's Supreme Court froze its bank accounts.
Earlier, Musk was instructed by the Brazilian Supreme Court to appoint a legal representative for his messaging platform, X, in Brazil or face potential suspension.
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