On 21st December 2022, the Federal Government published Provisional Measure No. 7,163/2021, introducing new limitations in respect of the Emergency Program for the Resumption of the Events Sector (PERSE), cretaed by Law No. 14,148/2021 and by Ordinance ME No. 7,163/2021.

On 1st November 2022, the Brazilian Federal Revenue Service – RFB published Normative Instruction 2114/2022 to regulate the matter and at the end of 2022, Ordinance No. 11,266, wich was published on 2nd January 2023 and restricted operational classification codes (“CNAE”) covered by the Program.

PERSE assures a 0% rate for federal corporate income tax and contributions (IRPJ, CSLL, PIS/PASEP and COFINS) on revenues and results of economic activities in the events sector until February 2027.

The tax benefit applies to revenues and results arising from the economic activities listed in Annexes I and II of Ordinance ME No. 7,163/2021 and relate to:
I. organization of congresses, fairs, sporting events, social, promotional or cultural events, business fairs, concerts, parties, festivals, symposiums or shows in general, event venues, social and children’s buffets, nightclubs and concert halls;
II. hotels in general;
III. management of cinemas, movie theaters; and
IV. tourist services.

Notwithstanding there are limitations at administrative level, there are precedents expanding access to PERSE benefits to companies that explore activities related to codes listed in the ME No. 7.163/2021, and that were impacted by COVID-19 pandemic.

In this regard, our recommendation is to evaluate the possibility of adopting appropriate judicial measures to secure the right to adhere to the fiscal benefits of the Program.