Emergency Program for the Resumption of the Events Sector

As a way of minimizing the effects of the Covid-19 pandemic, the Brazilian Government created the Emergency Program for the Resumption of the Events Sector ("PERSE" or "Program"), established by Law No. 14148/2021, amended by Law No. 14859/2024, which consists of granting benefits to support one of the sectors most seriously affected by the pandemic.

In this regard, the key point of the PERSE law is to provide financial assistance and tax incentives to help companies and professionals working in the events sector to cope with the economic hardships brought by the pandemic crisis.

The measures adopted by the Program aim not only to mitigate the immediate effects of Covid-19 on the sector, but also to prepare it for a sustainable recovery adapted to the new post-pandemic realities.

By regulating the law through RFB Normative Instruction (IN) No. 2195/2024, it was established that, in order to obtain the PERSE benefit, taxpayers duly meeting the current requirements of the law must regularize their qualification through the e-CAC Website by August 2, 2024.

It should be noted that, originally, the PERSE law stood out for granting a tax benefit that offers a 0% reduction in the PIS/Pasep, Cofins, CSLL and IRPJ rates levied on revenues and results earned from the performance of activities related to the sector for a period of 60 months, i.e. until March 2027.

However, since the law was enacted, there have been several changes to the law, which have limited the list of taxpayers/beneficiaries eligible for the benefits brought by the Program.

After Law No. 14859/2024 became effective, which amended the law that established PERSE, there was:

• A significant reduction in the number of CNAEs that would be entitled to the tax benefit, in addition to making it compulsory for the CNAEs provided by the legal entity (and eligible for the benefit) to be its main activity until March 2022;

• In some cases, the taxpayer must be licensed by Cadastur by May 2023;

• Limitation of the benefit to taxpayers who choose taxable income or arbitrated income, with the reduction in rates being restricted to PIS/Pasep and Cofins only.

In view of the considerable change in legislation since the enactment of the law establishing PERSE, it should be noted that the issue has been moving the Judiciary branch through legal measures brought by taxpayers who felt affected by the recent changes to the laws, which has generated legal uncertainty on the matter.

Taxpayers who were initially classified as beneficiaries of the Program and were disqualified or had their benefit reduced after these changes, or who have doubts as to whether they are in compliance with the requirements established by law to join PERSE, should seek legal advice so that their right to enjoy the benefit is guaranteed.

For this reason, MOA Advogados will be able to clarify doubts on the matter and present solutions to companies and professionals in the events sector who are interested in joining PERSE, whose tax benefits will have a major financial effect on its beneficiaries to minimize the damage suffered by the sector after the pandemic.