The 10% That Makes a Difference: How Tips Can Impact Your Business's Taxes

Tips: Clear Rights for Companies Under the Lucro Presumido (Deemed Profit) Tax Regime

According to the Superior Tribunal de Justiça (STJ, Brazil's Superior Court of Justice), tips are considered part of an employee's wages and must be passed on to staff in full. As a result:

They cannot be taxed under IRPJ (corporate income tax), CSLL (social contribution on net profit), PIS or COFINS (federal social contributions) for companies under the Lucro Presumido regime.

The company acts merely as a collector of these funds, and the amounts do not constitute revenue of its own.

This understanding was consolidated by Opinion SEI No. 129/2024, issued by the Ministry of Finance, which recommends excluding tips from the calculation basis of these taxes.

What about companies under Simples Nacional (simplified tax regime for small businesses)?

Here's an important point: if your company is under the Simples Nacional regime, the matter has not yet been settled by the courts. This means that, in order to exclude tips from the tax calculation basis, a court decision will be necessary. This can be an excellent opportunity for tax savings, but it requires guidance from a specialized attorney.

Why is it important to act now?

If your company is already under the Lucro Presumido regime, follow the steps below to avoid tax issues:

Document the transfer of tips: Make sure the full amount is passed on to employees.

Keep clear records: Being able to demonstrate how tips were distributed is essential in the event of a tax audit.

Consult a specialist: An attorney can review your processes and ensure everything complies with the law.

For businesses under Simples Nacional, pursuing a court solution can open the door to important tax benefits, following the same reasoning already consolidated for the Lucro Presumido regime.

That well-known 10% doesn't have to weigh on business owners' pockets when properly managed. If your company is under Lucro Presumido, take advantage of the benefits already secured. If you're under Simples Nacional, don't waste time: reach out to an attorney and explore the possibility of saving money through a well-structured lawsuit.