Brazil’s banks have been drawn directly into the firing line of the country’s increasingly populist administration.
On March 1, president, Jair Bolsonaro, announced he would be raising the rate of the industry’s social contributions (CSLL) to 25% from 20%, to offset the costs of his decision to lower taxes on diesel and domestic gas.
The change will be effective for the second half of 2021.
The increase in CSLL takes the consolidated corporate tax rate for banks in Brazil to 50%.
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