In a judgment handed down on February 27, the 2nd Panel of the Superior Chamber of the Administrative Council of Tax Appeals (Carf) decided to dismiss the incidence of social security contributions on hiring bonuses.

The decision headed by the rapporteur of the case brought before the Council, Judge Maria Helena Cotta Cardozo, is the first one issued in the sense that if the payment was made before any effectiveness in relation to the services, it has the character of indemnity, not of remuneration, for purposes of verification of the taxable event in question.

The rapporteur commented that if the consideration, not verified by the IRS in the case analyzed by the Council, had been verified, the taxation of the payment of the hiring bonus would undoubtedly be legitimate.