The Senate approved changes to Complementary Law 116/2003 major tax on services on 14 December 2016. The modifications need to be ratifies by the President.
The key changes are given below:
The tax rate is increased from 0% to 2%; new services (e.g. data processing, surveillance) are integrated in the list subject to ISS; in the case of leasing, factoring, and credit and debit card services, ISS need to be charged by the municipality where the service is make available and municipalities are not permitted to grant exemptions, deductions of the taxable base, tax credits or any other benefits.
