Consequences of the undefined concept of input for non-cumulative contributions of PIS and COFINS in industry, commerce and service delivery

Abstract

Non-accumulation emerged in order to exonerate the supply chain, but the cumulative system remains valid. In the development of the non-accumulation law in the PIS / COFINS (Social Integration Program / Contribution for the Financing of Social Security), the legislator established the obligation of linking that system to the method of calculating the income tax. Thus, companies that tax with net income raise their social contributions in a non-cumulative way while those with the presumed income shall be cumulative. Besides, the legislation also enumerated the credits allowed to exonerate the supply chain. These attitudes caused a discrepancy with the objectives of non-accumulation; this is because to establish the credit for the discount affects the principle of non-accumulation. Given these facts, we sought to study the impacts that the non-accumulation brings to the companies when segregating them in the industrial, commercial and service delivery sectors. As a result of the analysis it was found that, for these companies in the industrial and commercial sectors, the non-accumulation achieved its objectives, albeit in an attenuated manner, since it only follows the credits that appear in the law. As for the two service providers analyzed, who are bound to non-accumulation of contributions, this system only resulted in higher payments to the cumulative system. Through the analysis it is concluded that, primarily, non-accumulation should be exercised in full and without restrictions, as it is the essence of the principle of non-accumulation and the taxpayer should have the freedom of choice to be cumulative or non-cumulative, exercising efficient tax management.