Mannrich e Vasconcelos Advogados

Brazil

Address:
Avenida Paulista, 1776, 23º andar
São Paulo, 01310-200
Brazil

+55 11 3737 7777


Key contacts:

Tax Partner: Breno Ferreira Martins Vasconcelos
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Tax Partner: Thais Romero Veiga Shingai
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Quick facts:

Number of advisers: 30
Languages: Portuguese, English, Italian, Spanish, French


Mannrich e Vasconcelos' highly-specialized partners, associates and consultants apply their legal skills to add value to and improve clients' businesses, in order to make the practice of law an instrument for sustainable economic development.

Our team assists clients in an efficient and customized manner, in search for strictly technical, safe and innovative solutions.

The tax team:

  • represents clients in administrative and judicial proceedings with a creative approach, considering case law and the cost-benefit ratio to the client,
  • provides legal assistance in litigation and consulting regarding Social Security Law, as structuring and review of compensation plans and benefits,
  • advises clients in tax planning and application for special tax regimes and tax benefits, (iv) takes part in leading cases in higher courts,
  • reviews tax procedures and anciliary obligations to identify unused credits,
  • drafts inquiries to tax authorities in specific cases of uncertainty as to the interpretation of a given tax rule and
  • renders legal assistance in obtaining certificates of good standing and answering tax audits in an efficient and timely manner.

  • Compliance management
  • Corporate tax matters
  • Dispute resolution
  • Tax advisory
  • Indirect tax

Dispute resolution
Breno Ferreira Martins Vasconcelos
Tax Partner
breno@mannrichvasconcelos.com.br

Recent matter highlights:

  • Social security contributions on maternity leave. Our firm is representing a non-profit civil association regarding the Extraordinary Appeal No. 576.967/PR, which is a leading case in the Supreme Court and involves the levy of social security contributions on the maternity leave. On behalf of the association, the tax team filed a petition requesting to take part of the lawsuit as amicus curiae. This request was granted by the Supreme Court, so in November 2019 Breno Vasconcelos attended the Supreme Court session and made oral arguments in the trial. The Supreme Court concluded the trial in August 2020 and declared the unconstitutionality of the levy of social security contributions on the maternity leave. As leading case in the Supreme Court, this case has a significant impact on all other lawsuits about this subject and aims to reduce the gender inequality in the labor market. Our performance was very innovative as Breno Vasconcelos made relevant oral statements in the trial.
  • Reduction of the customs duty on the import of fire guns. Our firm is representing Instituto Sou da Paz regarding the Action Against the Violation of a Constitutional Fundamental Right No. 772, which is a leading case in the Supreme Court and involves the reduction of the customs duty on the import of fire guns by the Resolution No. 126/2020 of the Executive Committee of the Foreign Chamber of Commerce. On behalf of the client, the tax team filed a petition requesting to take part of the lawsuit as amicus curiae. This request was accepted by the Supreme Court, so Breno Vasconcelos presented oral arguments during the trial on February 2021. The trial was suspended by the Court. As leading case in the Supreme Court, this case has a significant impact on all other lawsuits about this subject. The matter is also relevant because this Action aims to reduce the access to fire guns by the civil society, which could violate constitutional rights that guarantee life, human dignity and public safety due to the fact more people could die from the increase of fire guns in circulation.
  • Social security contributions on the one-third extra holiday pay. Our firm is representing a non-profit civil association regarding the Extraordinary Appeal No. 1.072.485/PR, which is a leading case in the Supreme Court and involves the levy of social security contributions on the one-third extra holiday pay. On behalf of the association, the tax team filed a petition requesting to take part of the lawsuit as amicus curiae. This request was accepted by the Supreme Court, so Breno Vasconcelos and Nelson Mannrich (partner of our labor law team) took part of a hearing with Justice Marco Aurélio Mello. In 2020 Nelson Mannrich attended the Court session and made oral arguments during the trial. The Supreme Court concluded the trial in August 2020 and declared the constitutionality of the levy of social security contributions on the one-third extra holiday pay. A motion for clarifications was presented against the decision. As leading case in the Supreme Court, this case has a significant impact on all other lawsuits about this subject. This matter is also relevant because the social security contributions on the one-third extra holiday pay can represent a significant percentage of the taxes levied on the payroll.
  • Tax basis of services tax for health insurance providers. Most Municipalities, according to case law, understand that the price of the services rendered by health insurance companies (as our client) correspond to the difference between the payments received from its clients and the amount transferred to medical services providers. Distrito Federal, however, does not allow health insurance companies to extract the amount transferred to medical services providers from its revenues, so tax authorities understand that services tax levies on the total amount paid by the clients. In this scenario, our team filed a lawsuit on behalf of the client to obtain a decision recognizing that services tax levies only on the commission received by the health insurance company. An injunction was granted to prevent Distrito Federal from collecting services tax on the amount transferred by the client to medical services providers. It was also stated that services tax cannot be withheld. In 2019 the appeal filed by Distrito Federal was analysed by the Court of Justice, which was rejected. Breno Vasconcelos attended the Court session and made oral arguments in the trial. In 2020 the client presented a motion for clarifications against this decision, which were also rejected. The decision became final and unappealable in May 2020. This matter is extremely relevant for our client and all health insurance companies, since the calculation basis adopted by the Distrito Federal and other Municipalities substantially increases the amount of services tax to be collected, making the activity unfeasible.

This matter was covered by the specialized press (https://www.jota.info/tributos-e-empresas/tributario/justica-exclui-plano-substituicao-tributaria-iss-20082018).

  • Social security contributions due on outsourcing. Our firm is representing a non-profit civil association regarding the Reference on Violation of a Fundamental Precept No. 630/DF, which is the leading case in the Supreme Court involving the levy of social security contributions on payments made to companies that provides intellectual services, the Declaratory Action for Constitutionality No. 66/DF. On behalf of the association, the tax team filed a petition on requesting to take part of the lawsuit as amicus curiae in February 2021. This request was granted by the Supreme Court in March 2021.As leading case in the Supreme Court, this case has a significant impact on all other lawsuits about this subject. This matter is also relevant because social security contributions levied on payments made to companies that provides intellectual services can have a very significant impact on health sector.

Indirect tax
Breno Ferreira Martins Vasconcelos and Thais Romero Veiga Shingai
Tax Partners
breno@mannrichvasconcelos.com.br / thais@mannrichvasconcelos.com.br

Recent matter highlights:

  • Brazilian tax reform. In Brazil, a tax reform is under discussion in the House of Representatives and the Senate. The bills propose to simplify tax collection by unifying at least five taxes currently due on goods and services, that would be replaced by a value added tax (“VAT”), called goods and services tax (“GST”), which would levy on every goods and services at the same tax rate.Alongside CNSaúde and economists retained for reform impact studies, our tax advisory team have identified that if the reform is passed as proposed, some activities, as health services, would bear a higher tax burden than the currently applicable.Considering that the tax burden would increase by almost 12 percentage points in the sector if the reform bills are approved, the discussion in which our team is involved is extremely relevant to the cost and quality of health services in Brazil.Our team also carried out a research on the treatment given to healthcare services in 117 countries, having identified that 82% of these jurisdictions adopted reduced VAT rates to medical services. In addition, we have monitored and listed all amendments to the bills ongoing in Brazil. In September 2019, our firm held an event for clients on the tax reform. In March 2020, CNSaúde, which represents health service providers from all over Brazil, held a congress to debate the effects of tax reform in the sector, in which Breno Vasconcelos and Thais Shingai gave the opening lecture of the event, mentioning the reform proposals under discussion in the National Congress and the international experience on the matter.Continuing this important performance, in the second half of 2020, Breno Vasconcelos and Thais Shingai took part in a meeting with the Joint Tax Reform Commission, in which they presented their considerations on behalf of the health sector.

 

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  • Government and public policy
  • Healthcare
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  • Real estate
  • Transport