Companies in Brazil will have another incentive to outsource. The Brazilian Federal Tax Office has issue a definite statement enabling companies that hire outsourcing services to use credits linked to the amounts paid to temporary staffing companies in the non-accumulative system of PIS and COFINS.

The Solução de Divergência Cosit n° 29, defined the amount of expenses linked to hiring outsourced Workforce that generate PIS and COFINS credits – which can be used to pay any tax.

Back in 2013, the president of Sindeprestem and Fenaserhtt, Vander Morales and members of the executive board of these organizations, presented a technical-economic survey to the Ministry of Finances that showed the negative impact this tax had on the services sector.

With this Solução de Divergência, companies have another incentive to use outsourcing, in order to cut down expenses. The financial impact will be significant, particularly considering that the share of PIS and COFINS contributions is around 9.25% of the non-accumulative regime.

To read the full statement in Portuguese, click here.