Do you know what the non-cumulative regime is? In the following post, we’ll talk more about what it is, what it’s for, how it works. In addition to talking more about the differences between the non-cumulative regime and the cumulative regime, citing some examples of them applied.
What this article covers:
What is the non-cumulative regime?
The non-cumulative regime is a tax regime in which a company may not pay PIS and COFINS, if it has already received these in some previous operation in the case of the same production chain; therefore, there is no cumulative collection of the same taxes.
A clear example of this is: by the logic of the non-cumulative regime, a bag of flour that was sold to a bakery would have already had its taxes collected, so when it goes on its way through the production chain, it would not be taxed again and would be exempt from them. , for the first time their tributes were conceived had already happened.
What is the non-cumulative regime for?
Let’s assume that there is a primary supplier, a wholesaler, and after him a retailer, who work with the same product and consequently in the same production chain, the non-cumulative regime serves precisely for only the first of this chain that was exemplified, to have their taxes paid later from him the rest would not accumulate again.
So in practice, the non-cumulative regime serves as a kind of implementation of the non-cumulative principle, and any company that fits the requirements to make use of it would only have to have its taxes collected once.
What are the differences between cumulative regime and non-cumulative regime?
In the cumulative regime, taxes are defined by a calculation base that involves the company’s gross operating revenue. Those who opt for this type of regime are usually companies that prefer presumed and arbitrated profit.
Other than that, as the name itself says, it is a cumulative regime; which implies that all subsequent buyers of the same production chain pay their respective taxes.
In the non-cumulative regime, the calculation basis remains the same, but with the difference that its gross operating revenue allows deductions for taxes paid on purchases of inputs, as well as services from third parties. Those who generally opt for the non-cumulative regime are companies that prefer real profit, even with exceptions.
How does the non-cumulative regime work?
The non-cumulative regime works with the company framed within it, where it can deduct from its tax collection, the PIS and COFINS amounts that were previously collected in its previous operations.
Even though it is not completely exempt from taxation again, it does not necessarily need to collect the total amount since it can subtract the amounts that have already been collected in the first of the operations of its production chain.
Which companies fall under the non-cumulative regime?
There are some prerequisites for companies to be included in the non-cumulative regime, they must calculate their IRPJ based on presumed profit, however there are some exceptions; credit unions, health plan operators and financial institutions cannot claim the non-cumulative regime.
Basically, the non-cumulative regime is a valid strategy, for several companies to reduce the amount of taxes collected, through the same type of transaction being carried out several times until the product reaches the final consumer, thus reducing many taxes that would be charged in the middle of this way.
In this way, you learned about what the non-cumulative regime is, what it is for and how it works, so if you had not yet applied it without your business, check with the accountant if your company fits to apply it correctly in the your enterprise.