Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 202

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 202
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 multinational groups with annual revenue of more than 750 million euros, subject to an effective minimum tax rate on profits earned in Brazil.
 On the same day, the Brazilian Federal Revenue Service issued Normative Instruction No. 2,228/24, which regulates Provisional Measure No. 1,262/24. This proposal is aligned with the OECD’s Qualified Domestic Minimum Top-up Tax (QDMTT), which favors the jurisdiction where profits were generated by imposing a minimum income tax. If the minimum tax is not collected in Brazil, other jurisdictions may claim as profits generated in the country. The Provisional Measure No. 1,262/24 follows the OECD model to ensure that the additional CSLL paid in Brazil can be offset with the supplementary tax that may be required by other jurisdictions. All entities whose results are consolidated in the financial statements of multinational groups — that is, groups operating in more than one jurisdiction and having annual revenue of more than 750 million euros in two of the last four consecutive fiscal years (Constituent Entities) — will be subject to the additional CSLL. This additional tax applies only to “surplus” profits, defined as profits calculated according to the Brazilian accounting standards (with certain adjustments), deducting so-called substance-based profits. The exclusion of profits based on substance aims to reduce the tax burden on the results generated by intensive operations in tangible assets and labor.
 The rules of the Provisional Measure No. 1,262/24 were subsequently incorporated into Law No. 15,079/24, of December 27, 2024, approved by the National Congress and currently in force.
 
4.B.80.03 PIS and Cofins
 Two federal taxes are imposed on the gross revenues of legal entities: PIS and Cofins. Nonetheless, many revenues, such as dividends, equity earnings from unconsolidated companies, revenues from the sale of non-current assets (investments, fixed assets and intangible assets) and, generally, export revenues paid in foreign currency are not included in the calculation base for PIS and Cofins. Revenues earned by corporations domiciled in Brazil are subject to PIS and Cofins taxes corresponding to interest on own equity.
 Brazilian legislation authorizes certain adjustments to the calculation base of those taxes depending on the business segment and on other aspects.
 In 2002 (PIS) and 2003 (Cofins), the government implemented a non-cumulative collection system of PIS and Cofins taxes, allowing taxpayers to