It should be noted that the termination of the PAT was already the object of the Tax Reform proposal (Bill no. 2.337/21), but that due to the controversy involved, it ended up being withdrawn from the proposal.
According to article 641 of the Income Tax Regulation - RIR/18, the PAT tax benefit is a deduction of the amount equivalent to the application of the tax rate (15%) on the sum of the costing expenses incurred in the calculation period of the income tax owed.
Regarding the amendments to the aforementioned Decree, we highlight the following aspects:
Given the foregoing, it is important to highlight that with the limitations imposed on the use of the tax benefit about expenses related to the PAT, it is expected that the value of the benefit calculated from December 11, 2021, will be reduced in many beneficiary companies, given that meal expenses for workers who receive compensation above 5 minimum Brazilian wages, as well as those who receive the meal benefit in an amount higher than the minimum Brazilian wage (about BRL 1,100.00 currently), will no longer be part of the PAT expenses for the purpose of deducting the income tax due.
Finally, we warn you that there are already signs in the market that such changes could lead to several lawsuits by the beneficiary companies, given that the changes were introduced by a Decree, which in the legal system is hierarchically inferior to Act No. 6,321/76, which instituted the PAT.