Malls ask for exclusion of rent revenue in tax – 03/26/2023 – Panel SA

In his last meeting with secretary Bernard Appy and parliamentarians, the president of the Abrasce shopping mall association, Glauco Humai, states that he defended the exclusion of rent revenues from the sector in the new IBS (Tax on Goods and Services).

Humai says that he feels good reception from the government and Congress to the sector’s proposals.

“We are not against the reform. We think it is necessary, because it will bring investment and will increase competitiveness and productivity, but, in such a complex and already consolidated environment in Brazil, starting with a single IBS rate is very complicated”, it says.

Also according to Humai, if the IBS is levied on rents, the entity’s suggestion is that it not be at the maximum rate.

Abrasce estimates that a 25% rate of the new tax would increase the tax burden of shopping malls by up to 584%.

Glauco Humai also suggests transferring credits from the new tax between malls in the same group. “Malls are not branches. Each one has a CNPJ, it is a company incorporated. So, [a proposta é que] if two or ten malls are part of the same economic group, such as Iguatemi or Multiplan, for example, they could exchange credits”, he says. According to him, the credits would be deducted later from the tax.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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