The 2nd Panel of the Superior Chamber of the Administrative Council of Tax Appeals (Carf) understood, by unanimous vote, that social security contributions do not apply to the hiring bonus, since the amount would not be of a remunerative nature.
The decision was in cases 16327.001665/2010-78 and 16327.001666/2010-12 and represents a change in the group's understanding, due to the new composition.
There was a tie in the conclusion of the votes: half of the councilors understood that social security contributions are not levied on the bonus only in the specific case, because the inspection did not demonstrate that the payments were due to the provision of services. The other half, which had the winning position, understood that the bonus would not have a remunerative nature in itself.
The taxpayer paid the hiring bonus and did not include it in the calculation basis for social security contributions. For the tax authorities, the amounts were considered remunerative in nature and, therefore, social security contributions should be levied.
In oral arguments, tax lawyer Vinicius Caccavali argued that the hiring bonus is not a consideration in nature and, in this specific case, it is true that the payment was made only once and without any condition for the employee's continued employment.
The position of councilor Rita Eliza Reis da Costa Bacchieri prevailed, as she understood that the hiring bonus is not a remunerative bonus in any situation. Four other councilors agreed with her.
For the rapporteur, councilor Marcelo Milton Risso, the hiring bonus in itself is not remunerative in nature, however, in this specific case, as the inspection did not prove that the payments were made as a result of the provision of services, the amounts should not be included in the contribution base. Four other councilors agreed with him.