The municipality of São Paulo reduces the ISS tax rate.
On November 27, 2021, Law No. 17,719/2021 was published in the Official Gazette of the Municipality of São Paulo, which, among other provisions, amended provisions of Law No. 13,701/2003, which deals with the legislation of the Tax on Services (“ISS”). Of particular note is the reduction of the ISS rate to 2%, effective January 1, 2022, for various activities carried out by digital platforms, such as the intermediation of rentals, passenger transport or deliveries, the purchase and sale of goods and other tangible movable property (marketplace), and property management. The measure aims to attract investment to the Municipality through the establishment of companies and the generation of jobs, the same strategy used by neighboring municipalities such as Osasco, which is hosting several digital platforms and transforming itself into a hub for technology companies. In addition to activities carried out through digital platforms, the reduced tax rate also covers activities related to (i) agency, brokerage or intermediation of franchise agreements (franchising), and (ii) visual programming, visual communication and similar activities. The lawyers on the tax team at De Vivo, Castro, Cunha e Whitaker Advogados are available to advise their clients and partners on legislative changes and case law interpretations that may impact the development of their activities.
R. Leopoldo Couto Magalhães Júnior, 758 - 10º andar
Itaim Bibi, São Paulo - SP, 04542-000