Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 200

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 200
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.B.80.02 Income and social contribution taxes on profit
 Federal taxes on company profits include two components, income tax known as IRPJ and tax on net income, known as Social Contribution or CSLL. Both are calculated on the basis of adjusted net income. Income tax charges are calculated based on a rate of 15.0% plus a surcharge of 10.0% on taxable income exceeding R$240 thousand per annum, corresponding to a combined rate of around 25.0%. Social contribution tax, payable by the majority of financial institutions, is calculated based on a rate of 15.0% as of January 1, 2019.
 However, with the enactment of Constitutional Amendment No. 103/19, as of March 1, 2020, banks of any kind and the development agencies began to be subject to the increased rate of 20%. On March 1, 2021, Provisional Measure No. 1,034/21 was enacted, which increases the rates for Social Contribution by 5% for the majority of financial institutions (including banks of any kind) during the period from July 1, 2021 to December 31, 2021. Provisional Measure No. 1,034/21 was converted into Law No. 14,183/21, which (i) increased to 25% the CSLL rate on banks of any kind, later reduced to 20% as of January 1, 2022; and (ii) maintained the increase in the Social Contribution rate to 20% for most of the other financial institutions until December 31, 2021, which was subsequently reduced to 15%.
 However, in 2022 Provisional Measure No. 1,115/22 was amended and later converted into Law No. 14,446/22, increasing, until December 31, 2022, the CSLL rate: (i) from 20% to 21% for banks of any kind; and (ii) from 15% to 16% for the other financial institutions. As of January 2023, rates returned to 20% and 15% for banks of any kind and other financial institutions, respectively. For further information on our income tax expense, see Note 37 to our consolidated financial statements in “Item 18. Financial Statements”.
 Companies in Brazil are taxed based on their global income, not just the income produced exclusively in Brazil. As a result,