All about CPRB: origin, calculation basis and objectives of payroll exemption in Brazil
In this article we talk about what the CPRB is, how it was created, what the calculation basis is and various other important information for those who want to join.
In August 2011, the federal government's Brasil Maior Plan (PBM) aimed to stimulate innovation and competitiveness in Brazilian industry. To this end, one of the measures created was the payroll tax exemption, created from the conversion of Provisional Measure 540 of August 2, 2011, into a new law. Law 12.546/2011.
The objectives of creating the CPRB were to reduce labor costs, encourage the maintenance and creation of jobs and combat informality.
What is CRPB?
The acronym CPRB stands for Social Security Contribution on Gross Revenue. It was first instituted by Provisional Measure 540, published on August 2, 2011, and later by Law 12,546/2011.
The Social Security Contribution on gross revenue is considered a social contribution of a tax nature. It is intended to fund social security and is the responsibility of the Federal Union.
Firstly, the creation of the CPRB was aimed at reducing high labor costs. At the same time, it aimed to stimulate the maintenance and creation of jobs in the country, in order to combat informality in the labor market.
The CPRB is better known as payroll exemption. Simply put, it is a tax that replaces the employer's social security contribution with a contribution based on gross revenue.
What companies do is pay a fee on their monthly revenue. The amount can vary depending on the line of business, economic sector and end product.
Its application must be based on article 12 of Law 12973/2014, which applies the contribution to PIS and COFINS.
Spreadsheet
Employee in the Company
How to calculate the CPRB
Calculating the Social Security Contribution on Gross Revenue (CPRB) involves a few steps. It is worth noting that the information may change according to current legislation, and it is always advisable to consult an accounting professional for specific guidance. In general, the calculation is carried out as follows:
Determine gross revenue
This is the company's total turnover, without deductions. It includes sales of products and services.
Identify the activities covered
Not all business activities are covered by the payroll tax exemption. Make sure your activity is included in the CPRB.
Apply the tax rate
The CPRB rate varies according to the economic activity. It is generally lower than the rate of the social security contribution on payroll. Check the legislation in force to find the rate applicable to your case.
Calculate the contribution
Multiply the Gross Revenue by the applicable rate to find the CPRB amount.
Attention to detail
There are particularities and nuances in the calculation, depending on the specific legislation and the characteristics of the company. Aspects such as revenue exclusions, compensations and other variables can influence the final result.
Example of CPRB calculation
The calculation of the Social Security Contribution on Gross Revenue (CPRB) can vary according to the legislation in force and the specific characteristics of the company. However, I will provide a simplified example to illustrate the process:
Suppose a company has Gross Revenue of R$ 500,000.00 and the CPRB rate for its activity is 4.5%.
Calculation:
CPRB=R$500.000,00×0,045
CPRB=R$22.500,00
In this simplified example, the CPRB amount would be R$ 22,500.00. Remember that this is only a generic example and that the actual application may involve additional considerations, such as exclusions from income, legal limitations and other business-specific variables.
[Article]: What is prior notice? What are the types? How should they be complied with?
Legislation and the evolution of exemption
The payroll tax exemption legislation has had important milestones over the years. A Law 12.546/2011 established mandatory exemption, while Lei 13.161/2015 allowed companies to choose between the conventional contribution and the exemption, with percentages varying by sector.
Subsequently, the Law 13.670/2018 brought changes and, on December 31, 2020, ended the substitute contribution for 39 sectors. In 2021, the Law 14.288 extended the exemption until 2023 for 17 sectors, adapting to the changes caused by the pandemic.
[Article]: Accounting impacts of payroll exemption
Sectors benefiting from exemption
The payroll tax exemption has been extended until 2023 for strategic sectors, including:
- Shoes
- Call Center
- Communication
- Clothing
- Construction
- Construction and infrastructure companies
- Leather
- Manufacture of Vehicles and Bodies
- Machinery and equipment
- Animal Protein
- Textile
- IT (Information Technology)
- ICT (Communication Technology)
- Integrated Circuit Design
- Metro Passenger Transport
- Collective and Road Freight Transportation
[Article]: What do I need to know when hiring an employee?
Payroll deductions understand the details
When dealing with payroll exemption, it is essential to understand the deductions present in the payroll itself. Some of the main discounts include:
1. Pension deduction
Variation of 7.5% to 14% on the salary, destined for Social Security.
2. Withholding income tax (IRRF)
Tax on employee earnings, withheld by the company.
3. Union dues
Optional since the 2017 Labor Reform
4. Absences and delays
Deductions for days not worked without justification.
5. Transport and food vouchers
Specific rules for discounts, guaranteeing benefits to employees.
[Article]: Negative consequences of a wrong payroll
Who can adopt the payroll exemption?
The exemption can cover companies that fall within certain activities, as established by law. After the Law 12.546/2011The exemption has become optional, allowing companies to choose the most advantageous way of taxing their payroll, either the traditional way or the exemption way.
[Article]: The best employment contracts learn about the options for your company
Who are the tax payers?
Taxpayers are all companies that carry out activities and earn their income, as described in articles 7 and 8 of the Law 12.546/2011.
[Article]: Learn what payroll exemption is, how it works and how to calculate it
Is the CPRB state, municipal or federal?
As we mentioned at the beginning of this article, the Federal Government instituted the CPRB.
[Article]: The importance of time control
How is it collected?
The CPRB is calculated in the same way as the PIS and COFINS contributions. It must be paid by the 20th day of the month following the month of accrual.
[Article]: Find out how notice works
Are there any ancillary obligations?
Companies that decide to opt for payroll exemption are automatically obliged to complete the Digital Tax Bookkeeping of Withholdings and other TAX Information (EFD-Reinf).
[Article]: Understand the importance of Vacation Control
How to opt for the CPRB?
The CPRB is opted for by paying the contribution levied on gross revenue for January of each year, or for the first subsequent period for which gross revenue has already been calculated.
[Article]: Human resources department: Duties and importance in people management
Conclusion
By understanding all the aspects of payroll exemption, your company will be better prepared to make strategic decisions and take advantage of the benefits of this measure. Keep up to date with the latest changes in legislation to optimize your personnel department routines and guarantee the success of your business.
If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.
Spreadsheet
Salary for Days Worked
