Non-profit entities are recognized as fundamental elements for the promotion of social, educational, cultural and philanthropic causes and are included in a complex framework of laws and for this reason it is essential to understand how the Taxation of non-profit entities works .
Entities can be classified as exempt or immune, depending on certain legal criteria, the differences between which are due to the fact that immunity is a constitutional right that prevents the institution from being taxed in some situations, while exemption is a legal benefit that can be granted or revoked via ordinary legislation, by a federated entity, that is, it is transitory.
In this article, we will explore the types of entities and the complex details of nonprofit taxation.
Types of Nonprofits
Within the universe of non-profit entities, some kazakhstan telegram data can be recognized as Social Assistance Charitable Entities (CEBAS), a title granted by the Brazilian Federal Revenue Service after a certification process, one of the requirements being not to remunerate directors, according to article 3 of Complementary Law 187 of 2021 .
To achieve this status, the entity must comply with the requirements stipulated in the legislation, which include, among other things, offering a minimum amount of free services to the population in a situation of social vulnerability.
Going further, we have class entities, considered to be those entities that act in the defense of the interests of their members and their category, constituted to provide services to them, represented by managers with elected and unpaid positions.
On this occasion, however, the focus will be on common civil associations and we will focus on the specificities of taxation of exempt entities in Brazil, with an emphasis on IRPJ, CSLL, PIS and COFINS, as well as ICMS and ISS taxation at the state and municipal levels.
Nonprofit organizations emerge as an appropriate way to promote a cause or provide a service, which does not have the primary objective of generating profit. On the contrary, any surplus revenue over expenses is reinvested in the organization to achieve its social objectives.
In turn, § 3, of art. 10, of law 9.718, of 1998, classifies non-profit entities as those that do not present a surplus in their accounts or, if they present a surplus in a given fiscal year, allocate the result entirely to maintaining their social objectives, as provided for in their Articles of Association.
- Board index
- All times are UTC
- Delete cookies
- Contact us